KUALA LUMPUR: The rights issue exercise undertaken by EG Industries Bhd
has been oversubscribed by 12.9%.
In its filing with Bursa Malaysia, EG Industries said it received valid acceptances and excess applications for 130.1 million rights shares worth RM65.1mil.
This represents a subscription level of 112.9% of the total 115.24 million rights shares available under the rights issue with warrants.
The electronic manufacturing services player issued a 3-for-2 rights issue comprising a total of up to 115.24 million new shares of 50 sen each, together with 57.8 million free detachable warrants on the basis of 1 free warrant for every 2 rights shares subscribed.
The exercise will see EG Industries’ total outstanding shares increase to 250.6 million of 50 sen each, with enlarged share capital of RM125.3mil.
At an issue price of 50 sen per rights share, the corporate exercise raised RM57.8mil in proceeds, which will be utilised for business expansion.
“Securing our shareholders’ strong support for the corporate exercises denotes their confidence towards the group’s growth strategy and prospects. The proceeds will facilitate our continued growth in the EMS sector, and reinforce our objective to be a strong partner for international customers,” said group chief executive officer and executive director Alex Kang.
The company has earmarked RM20mil to build a new factory adjacent to its current premises in Sungai Petani, Kedah. It also allocated RM21mil to purchase and upgrade machinery, and for purchase of inventory such as electronic components, printed circuit board and plastic resin.
EG Industries targets to list the rights shares and warrants on the Main Market of Bursa Malaysia on Nov 11, 2015.
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