Borneo Oil jumps 6% after proposing rights issue

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KUALA LUMPUR (Apr 28): Borneo Oil Bhd rose as much as 6% after the company proposed a rights issue, which will raise funds to finance the group's gold mining operations.

Borneo Oil (fundamental: 1.65; valuation: 0.5) rose as much as five sen to 73 sen before paring gains. At 12.30pm, the stock settled at 80.5 sen with some 5.3 million shares done.

Yesterday, the company proposed a one-for-six renounceable rights issue involving up to 2.37 billion new shares at an indicative 10 sen each.

The rights issue comes with up to 1.19 billion free detachable warrants on the basis of one warrant for every two rights shares.

(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.)