KUALA LUMPUR (July 19): Shares of reinsurer MNRB Holdings Bhd fell 8.12% in early trade this morning after it proposed to undertake a rights issue to raise gross proceeds of about RM400 million, which the issue price and entitlement basis would be finalised later.

At 9.09am, MNRB lost 19 sen to RM2.15 with 157,700 shares done.

For illustration purpose, the group assumed the issue price at RM1.57 per rights share, and an entitlement basis of four rights shares for every five shares held.

The proceeds of the rights issue will be injected into its takaful subsidiaries — Takaful Ikhlas Bhd and Malaysian Reinsurance Bhd, at RM300 million and RM100 million respectively — to enhance the capital position for both companies and grow its takaful and reinsurance business.

MNRB intends to procure an irrevocable written undertaking from Permodalan Nasional Bhd to subscribe in full for its entitlement.