KUALA LUMPUR (Feb 22): Vivocom International Holdings Bhd, whose share price has more than halved since May 2016, is proposing a two-for-three rights issue wanting to raise up to RM75.27 million.

The cash will be sweetened by free detachable warrants on the basis of one-for-two warrants E for every two rights shares subscribed.  

According to the filing, from the RM75.27 million to be raised from the exercise, RM49.07 million will be used for working capital, while RM25 million will be for its future viable investments, which include mergers and acquisitions of businesses or investments, while the remaining will be for the estimated expenses in relation to the exercise.

Vivocom said the proposed exercise will enable the company to raise funds without incurring interest expense compared to bank borrowings and will involve the issuance of new shares without diluting the existing shareholders' percentage shareholdings provided that all the entitled shareholders subscribe in full for their respective entitlements.

At 5pm, shares in Vivocom were unchanged at 11.5 sen for a market capitalisation of RM390.85 million.