Friday 29 Mar 2024
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KUALA LUMPUR (Oct 9): XOX Bhd has proposed to undertake a renounceable right issue of up to 356 million new shares, on a basis of one rights share for every one existing XOX share, coupled with up to 356 million free detachable warrants on the basis of one warrant for every one right shares subscribed.

The pricing of the rights shares will be determined at a later date.

In a filing to Bursa Malaysia this evening, XOX said proceeds raised from the rights issue will be utilised for the purposes of phone bundling expenses, working capital, and defray expenses related to the exercise.

Meanwhile, the mobile virtual network operator (MVNO) also proposes to reduce its share premium by up to RM32.73 million, and half of its shares’ par value of 10 sen each currently.

Following the capital reduction exercise, there will be a consolidation of every two shares of 5 sen par each, into one new share.

To raise more funds, XOX has also proposed to issue 190 million new shares to parties “to be identified later”, at an issue price of 10 sen, to raise RM19 million. The proceeds raised will be utilised to settle the amount owing to Celcom Axiata Bhd, for the usage of Celcom’s mobile and digital network infrastructure. As of Aug 31, 2014, the amount owing to Celcom stood at RM22.83 million.

Apart from that, XOX also proposes to establish a share issuance scheme (SIS) of up to 30% of its issued and paid-up share capital, at any one time within the duration of the scheme.

XOX fell half sen or 4.76% today, closing at 10 sen, giving it a market capitalisation of RM33.2 million.
 

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