Vivocom's rights issue with warrants oversubscribed by 10.39%

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KUALA LUMPUR (Aug 21): Vivocom Intl Holdings Bhd said today that its rights issue with warrants has been oversubscribed by 10.39%.

In a filing with Bursa Malaysia, it said it received total valid acceptances and excess applications for 2.5 billion rights shares with warrants E as at Aug 14, compared with the 2.27 billion made available for subscription.

Of the oversubscribed rights shares, 2.06 billion or 90.93% are valid acceptances, while the remaining 440.9 million or 19.46% are valid excess applications.

In February, Vivocom had proposed a two-for-three rights issue, wanting to raise up to RM75.27 million.

The rights issue, priced at 2.5 sen per rights share, was sweetened by free detachable warrants on the basis of one-for-two warrants E for every two rights shares subscribed.

Out of the RM75.27 million proceeds raised from the exercise, RM49.07 million will be used for working capital, while RM25 million will be for its future viable investments, which include mergers and acquisitions of businesses or investments. The rest will be used to pay off expenses in relation to the exercise.

Vivocom shares were traded unchanged at four sen today, giving it a market capitalisation of RM147.28 million.