OCK Group to raise maximum proceeds possible from rights issue with warrants

TheEdge Fri, Aug 21, 2020 08:24pm - 8 months ago

KUALA LUMPUR (Aug 21): OCK Group Bhd said has decided to undertake its proposed rights issue with warrants on a maximum subscription level basis, to raise up to RM24.45 million for the repayment of borrowings and fund its telecommunication network services segment.

OCK said it has procured an underwriting arrangement with UOB Kay Hian for the remaining 77% portion of the rights shares with warrants B, for which no unconditional and irrevocable undertaking has been obtained.

OCK proposed the rights issue with warrants on July 3, involving 122.26 million shares on the basis of one rights share for every 10 existing OCK shares held, as well as 122.26 million free detachable warrants on the basis of one warrant B for every one rights share subscribed.

Based on an indicative issue price of 20 sen per rights share, the group expects to raise up to RM24.45 million which will be used for the repayment of bank borrowings and working capital within 12 months, as well as to defray proposal expenses within one month.       

OCK said the repayment of bank borrowings will reduce the financing cost of the group, which stood at RM31.75 million for the financial year ended Dec 31, 2019.

The exercise is expected to be completed in the fourth quarter of 2020.

Shares of OCK closed one sen or 1% lower at 50 sen today, for a market capitalisation of RM474.49 million.

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