AsiaBio to raise up to RM81.4mil via rights issue

KUALA LUMPUR: Asia Bioenergy Technologies Bhd (AsiaBio) is proposing a cash call to raise as much as RM81.4mil mainly for investment purposes.

The technology incubator told Bursa Malaysia that it planned a renounceable rights issue of up to 1.16 billion new irredeemable convertible preference shares (ICPS) together with 116.32 million free detachable warrants.

Ten ICPS and a free warrant will be issued for every five existing ordinary shares held in AsiaBio on an entitlement date to be determined.

The issue price of the ICPS and exercise price of the warrants will be decided by the board at a later date.

The 10-year ICPS, which will not pay any dividend, may be converted into new fully-paid shares on any market day from their issue date, subject to a minimum of one ICPS and a maximum of two for every new share.

Based on an illustrative issue price of 7 sen per ICPS, AsiaBio will raise between RM10mil and RM81.42mil.

Under the maximum scenario, the company will allocate RM8.99mil and RM8.25mil to invest in the ICPS of energy efficiency device maker Focus Dynamics Group Bhd and the rights shares of renewable energy provider Vsolar Group Bhd, respectively.

It will set aside RM56.18mil to invest in companies listed or to be listed on Bursa Malaysia’s new Leading Entrepreneur Accelerator Platform Market and/or incubatees to be identified.

The proposed rights issue is expected to be completed by the first quarter of 2018.

AsiaBio’s two biggest shareholders are CPE Growth Capital Ltd, which is owned by Hong Kong-based Adamas Finance Asia Ltd, and Pelaburan Mara Bhd.

AsioBio closed at 13 sen on Friday, down half a sen.