KUALA LUMPUR: Bioalpha Holdings Bhd said its proposed rights issue with free warrants has been oversubscribed by 22.1%.

In a statement yesterday, Bioalpha said it received valid applications for 162.76 million rights shares over the total number of 133.33 million rights shares available for subscription.

To recap, major shareholders Bioalpha managing director William Hon and Perbadanan Nasional Bhd had earlier given their irrevocable written undertakings to subscribe in full for their respective entitlements under the proposed exercise, plus additional undertakings to subscribe for all remaining rights shares not subscribed by the other shareholders.

Nevertheless, the additional undertakings were not called upon given the positive response from the shareholders who took up all the rights shares allocation.

The proposed rights issue with free warrants will raise gross proceeds of RM26.7 million based on the issue price of 20 sen per rights share. The proceeds will be used for Bioalpha’s expansion plan.

The target completion date of the proposed exercise is Jan 10, 2017.

Bioalpha shares closed up 0.5 sen or 2.44% at 21 sen yesterday, with a market capitalisation of RM136.66 million.