This article first appeared in The Edge Financial Daily on August 10, 2018

KUALA LUMPUR: Timber and sustainable forestry firm Priceworth International Bhd announced yesterday that its rights issue with bonus shares has been oversubscribed by 25.45%.

In an exchange filing, Priceworth said as at the closing date of acceptance on Aug 6, it had received valid acceptances and excess applications for 2.57 billion rights shares.

This represents an oversubscription of 521.17 million rights shares, or about 25.45% over the total number of rights shares available for subscription. The total of rights shares available for subscription is 2.05 billion shares. Every successful application will get a bonus share for every two rights shares subscribed.

In October 2016, Priceworth announced its plans to acquire Rumpuan Capaian Sdn Bhd for RM260 million, to be funded via a series of corporate exercises which included a private placement, special issuance of shares, and a renounceable rights issue with bonus shares.

In March 2018, the company revised the proposed two-for-one rights issue to be a single call of five sen per share, for up to 2.05 billion shares, instead of a two-call exercise. Terms for the bonus issue remained unchanged.

Priceworth shares slid half a sen or 6.67% to close at seven sen yesterday, valuing it at RM224.34 million.