KUALA LUMPUR (Dec 15): DIALOG GROUP BHD [], which is undertaking a cash call to raise funds for more investments in the upstream oil and gas opportunities, has fixed the rights shares at RM1.20 each and the exercise price of the warrants at RM2.40 each.
Dialog's cash call involved a renounceable rights issue of up to 398.73 million new shares of 10 sen each together with up to 100.36 million free detachable warrants. This would be on the basis of two rights shares with one warrant for every 10 shares held as at Jan 9, 2012.
'Based on the issue price of RM1.20 per rights share, Dialog is able to further strengthen its financial position, with its shareholders' funds increasing to more than RM1.0 billion from RM583.1 million,' it said.
Dialog said the proceeds from the rights issue with warrants would enable it to boost its investments in the upstream oil and gas opportunities, including the development and production of petroleum under risk service contracts with Petroliam Nasional Berhad as well as the development of Pengerang independent deepwater tank terminals.
The issue price would be a discount of about 46% to the theoretical ex-rights price of RM2.23 per share, based on the five-day volume-weighted average market price up to Dec 14 of RM2.43.
'The discount of approximately 46% to the theoretical ex-rights price also enables the board to meet its objective of fixing the issue price at a discount of at least 30% to the prevailing theoretical ex-rights price as well as to reward Dialog's shareholders for their continuous support for the company,' it said.
As for the warrants, it said the exercise price was 8% above the theoretical ex-rights price of RM2.23 per share, based on the five-day volume-weighted average market price up to Dec 14 of RM2.43.
Dialog had on Thursday also executed an underwriting agreement with AmInvestment Bank Bhd and CIMB Investment Bank Bhd whereby they would underwrite up to 170.59 million rights shares to be issued pursuant to the rights issue with warrants, being the difference between the minimum subscription level and 109.40 million rights shares undertaken by certain shareholders and executive directors.
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Dialog's cash call involved a renounceable rights issue of up to 398.73 million new shares of 10 sen each together with up to 100.36 million free detachable warrants. This would be on the basis of two rights shares with one warrant for every 10 shares held as at Jan 9, 2012.
'Based on the issue price of RM1.20 per rights share, Dialog is able to further strengthen its financial position, with its shareholders' funds increasing to more than RM1.0 billion from RM583.1 million,' it said.
Dialog said the proceeds from the rights issue with warrants would enable it to boost its investments in the upstream oil and gas opportunities, including the development and production of petroleum under risk service contracts with Petroliam Nasional Berhad as well as the development of Pengerang independent deepwater tank terminals.
The issue price would be a discount of about 46% to the theoretical ex-rights price of RM2.23 per share, based on the five-day volume-weighted average market price up to Dec 14 of RM2.43.
'The discount of approximately 46% to the theoretical ex-rights price also enables the board to meet its objective of fixing the issue price at a discount of at least 30% to the prevailing theoretical ex-rights price as well as to reward Dialog's shareholders for their continuous support for the company,' it said.
As for the warrants, it said the exercise price was 8% above the theoretical ex-rights price of RM2.23 per share, based on the five-day volume-weighted average market price up to Dec 14 of RM2.43.
Dialog had on Thursday also executed an underwriting agreement with AmInvestment Bank Bhd and CIMB Investment Bank Bhd whereby they would underwrite up to 170.59 million rights shares to be issued pursuant to the rights issue with warrants, being the difference between the minimum subscription level and 109.40 million rights shares undertaken by certain shareholders and executive directors.
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