This article first appeared in The Edge Financial Daily on January 25, 2019

KUALA LUMPUR: Mycron Steel Bhd said yesterday its rights issue with warrants has been undersubscribed by 23.27%.

That means a take-up rate of only 76.73% or 43.51 million of the total 56.71 million rights shares available for subscription. Nevertheless, Mycron said it has achieved the minimum subscription level of RM10.8 million and has raised gross proceeds of RM13.05 million.

In a filing with Bursa Malaysia yesterday, Mycron said the total acceptances and excess applications were for 43.51 million rights shares, lower than the 56.71 million rights shares available for subscription on the basis of one rights share for every five Mycron shares held and one warrant for every two rights shares subscribed.

The rights shares with warrants are expected to be listed and quoted on the Main Market of Bursa Malaysia on Jan 31. Mycron had last year proposed the capital raising exercise to raise proceeds of up to RM17.01 million for capital expenditure and working capital.

Mycron shares fell one sen or 3.7% to close at 26 sen yesterday, bringing a market capitalisation of RM88.47 million.