KUALA LUMPUR: Bintai Kinden Corp Bhd has proposed a private placement and rights issue exercise to raise funds for working capital and to repay borrowings.

In a filing with Bursa Malaysia yesterday, the company plans to place out 10 million new shares, representing 9.8% of its issued and paid-up share capital to independent third party investors.

Both the identity of the investors as well as the issue price of the new shares will be determined later.

Following the completion of the private placement, Bintai Kinden (fundamental: 0.35; valuation: 1.2) will then embark on a rights issue exercise.

This will involve the issuance of up to 102.5 million rights shares and the same number of free detachable warrants on the basis of nine rights shares and nine warrants for every 10 Bintai Kinden shares held.

The issue price of the rights share and the exercise price of the warrants will only be determined by the company’s board of directors after all requisite approvals have been obtained.

Bintai Kinden said it has obtained irrevocable written undertaking from its 21.59% shareholder, Bintai Holdings (M) Sdn Bhd to subscribe in full for its entitlement under the rights issue exercise.

This article first appeared in The Edge Financial Daily, on February 5, 2015.