KUALA LUMPUR (Nov 4): EG Industries Bhd, an electronic manufacturing services player, saw its renounceable rights issue with warrants at an issue price of 50 sen oversubscribed by 12.9% over the total of 115.24 million rights shares available, raising RM57.8 million in proceeds for its business expansion.

In a filing with Bursa Malaysia today, EG Industries said the result was obtained at the close of acceptance and payment for the rights issue at 5pm on Oct 28.

"This represents a subscription level of 112.9% of the total 115.24 million rights shares available under the rights issue with warrants," the group added.

On July 23, shareholders in EG Industries approved the corporate exercise.

The rights issue with warrants will eventually increase the Group's total outstanding shares to 250.6 million of 50 sen each, with an enlarged share capital of RM125.3 million.

In a statement today, EG Industries group chief executive officer and executive director Alex Kang said the proceeds raised will facilitate its continued growth in the electronics manufacturing services sector, and reinforce its objective to be a strong partner for international customers.

"Securing our shareholders' strong support for the corporate exercises denotes their confidence towards the group's growth strategy and prospects," he added.

Of the proceeds raised, RM20 million has been earmarked for the building of a new factory adjacent to the group's current premises in Sungai Petani, Kedah.

It also allocated RM21 million to purchase and upgrade machinery, and for purchase of inventory such as electronic components, printed circuit board and plastic resin.

The group targets to list the new shares and warrants on Bursa on Nov 11.

At 2.38pm, shares in EG Industries were down 0.5 sen or 0.62% at 80 sen for a market capitalisation of RM152.08 million.

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