KUALA LUMPUR (Nov 6): PUC Founder (MSC) Bhd has obtained the green light from Bursa Malaysia Securities Bhd (Bursa Securities) on its recent proposed rights issue of irredeemable convertible unsecured loan stock (ICULS) with warrants to raise RM127.59 million.

In a filing to Bursa Malaysia today, PUC Founder said Bursa Securities had vide its letter dated Nov 6 approved the admission of the ICULS to the ACE Market, together with the listing of and quotation for up to 1.68 billion ICULS, pursuant to the proposed corporate exercise.

The local exchange also approved the listing of and quotation for up to 1.68 billion new PUC Founder shares to be issued from the conversion of the ICULS.

In addition, Bursa Securities allowed the admission of the 419.51 million Warrants-B to the ACE Market, and the listing of and quotation for the said warrants, together with the listing of and quotation for up to 419.5 million new PUC Founder shares to be issued from the exercise of the said warrants.

To recap, the proposed corporate exercise was expected to raise gross proceeds of between RM40 million and RM127.59 million, which would be utilised as the capital expenditure for the construction of solar photovoltaic (PV) plants (RM28 million to RM105 million), working capital (RM11 million to RM21.59 million) and defrayment of expenses incurred for the proposal (RM1 million).

Recall that on Aug 4, PUC Founder had proposed renounceable rights issue of up to RM127.59 million nominal value of three-year, 4%, ICULS at 100% of the nominal value of RM0.05 each (rights ICULS) on the basis of two RM0.05 nominal value of the rights ICULS for every one existing ordinary share of RM0.10 each in PUC Founder held by the entitled shareholders of PUC Founder on an entitlement date to be determined later.

This is together with up to 318.97 million free new detachable warrants (Warrant-B) on the basis of one Warrant-B for every eight rights ICULS subscribed.

Shares in PUC Founder closed 0.5 sen or 4.17% higher at 12.5 sen, for a market capitalisation of RM127.9 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)