KUALA LUMPUR (May 3): Mulpha International Bhd announced today that it has fixed the price of its two-call rights issue of 1.07 billion new shares at 50 sen per share, which will raise it RM267.5 million.

In a bourse filing, Mulpha said the issue price has been structured on a two-call basis, as such the first call has been fixed at 25 sen per rights share, with the second call's rights shares also priced the same.

Mulpha said the first call of 25 sen per rights share represents a discount of approximately 10.71% to the theoretical ex-rights price of Mulpha shares of 28 sen, calculated based on the five-day volume weighted average market price of Mulpha shares up to and including April 29, of 29 sen per share.

"For the avoidance of doubt, entitled shareholders and/or their renouncee(s) who subscribe for their respective entitlements of the rights shares will only be entitled to make cash payment for the first call of 25 sen per rights share," said Mulpha.

To recap, Mulpha had proposed on Nov 9 last year that a two-call rights issue of 1.07 billion new shares on the basis of one rights share for every two existing Mulpha shares.

The company said it plans to raise up to RM266.71 million, which will be mainly used to repay borrowings, as well as for development expenditure and working capital.

Mulpha had said the rights issue could reduce its gearing level to 0.67 times, from 0.83 times as at Dec 31, 2014, and added that the corporate exercise allows it to optimise its capital structure by increasing its net assets to RM2.62 billion, from RM2.36 billion.

Muplha shares closed half a sen or 1.67% lower at 29.5 sen today, with a market capitalisation of RM629.43 million.