KUALA LUMPUR (Nov 16): S P Setia Bhd has fixed the issue prices for its rights shares at RM2.65 each, and for its renounceable rights issue of new Class B Islamic convertible preference shares (RCPS-i B) at 88 sen apiece.

The rights issuance is being undertaken on the basis of two rights shares for 15 existing S P Setia shares (2-for-15), while the RCPS-i B issuance is to be implemented on the basis of 2 RCPS-i B for every five existing S P Setia shares held (2-for-5).

In a filing with Bursa Malaysia, it also announced that the conversion rate for the RCPS-i B would be at five new S P Setia shares for every 21 RCPS-i B held.

The rights issue and renounceable rights issue of the RCPS-i B are expected to raise RM1.2 billion per exercise, or RM2.4 billion in all.

The cash call is being conducted to part finance its acquisition of I&P Group Sdn Bhd from its controlling shareholder Permodalan Nasional Bhd for RM3.65 billion.

The rights issue price represents a 20.2% discount to the theoretical ex-rights price (TERP) of its ordinary shares of RM3.32, based on the five-day volume weighted average market price (VWAMP) of the shares up to and including Nov 15.

Based on the RCPS-i B issue price and the conversion ratio, the implied conversion price for the RCPS-i B is RM3.70 for every new S P Setia share. This represents a premium of 11.4% to the TERP of RM3.32, based on the five-day VWAMP up to and including Nov 15.

Separately, it said the entitlement and ex-dates for both rights issuances have been fixed at Nov 28 and Nov 30, respectively.

Maybank Investment Bank Bhd and RHB Investment Bank Bhd will jointly underwrite up to an aggregate of 156.38 million rights shares — or 34.6% of the total rights shares — for which no undertaking has been obtained.

S P Setia shares rose 13 sen or 3.81% to close at RM3.54 today, for a market capitalisation of RM10.69 billion.