Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (May 5): Shares of Icon Offshore Bhd and UMW Oil & Gas Corp Bhd (UMWOG) fell in early trade this morning on resuming trade following the request for a trading halt by the companies yesterday.

At 9.15am, Icon lost 11.69% or 4.5 sen to 34 sen with 6.73 million shares done while UMWOG fell 5.80% or 4 sen to 65 sen with 1.69 million traded.

This came on news that the demerger between UMW Holdings Bhd (UMWH) and its oil and gas arm, UMWOG, is progressing as planned to be completed by July, despite the latter's three-party merger with Icon and Orkim Sdn Bhd coming to a halt.

In a filing with Bursa Malaysia yesterday, UMWOG had proposed to raise up to RM1.81 billion through a rights issue of up to 6.05 billion new shares, together with up to 1.51 billion free warrants at an issue price of 30 sen per rights share.

UMWOG said the rights issue will be done on the basis of 14 rights shares for every five existing shares, while the warrants will be issued on the basis of one warrant for every four rights shares subscribed.

Out of the total gross proceeds from the rights issue, UMWOG plans to utilise RM1.5 billion to repay bank borrowings, RM310 million for working capital and the rest for expenses of the corporate exercise.

 

      Print
      Text Size
      Share