Guan Chong expects to raise RM120mil

Saturday January 8, 2011

Guan Chong expects to raise RM120mil

KUALA LUMPUR: Guan Chong Bhd (GCB) expects to raise up to RM120mil from through its corporate exercise of issuing RM2 for 60 million free warrants.

“Based on the exercise price of the warrants of RM2 per new GCB share, the company stands to potentially raise up to RM120mil during the tenure of the warrants upon full exercise of the warrants by the holders of the warrants.

“Such proceeds will be utilised for the day-to-day working capital requirements of the GCB group,” it told Bursa Malaysia yesterday.

The company said that it had fixed the exercise price for the warrants at RM2, which was 9.29% or 17 sen over the theoretical ex-price after the proposed bonus issue of RM1.83 per share, based on the five-day volume weighted average price of RM2.44.

The 60 million warrants were issued on the basis of one free warrant for every four existing shares held on the same entitlement date for the proposed bonus issue.

The corporate exercise also involved the proposed bonus issue of 80 million new shares of 25 sen on a one-for-three basis.

http://biz.thestar.com.my/news/story.asp?file=/2011/1/8/business/7758406&sec=business