KUALA LUMPUR (Feb 12): Trading in the shares of Eastern & Oriental Bhd (E&O) has been suspended for the rest of the day, given the drop in the property developer’s share price amid the group’s announcement of a fundraising exercise.
“Please be informed that the PDT (proprietary day trading) and IDSS (intraday short selling) activities for stock E&O (3417) has been suspended for the rest of the day as the last done price of the approved securities dropped more than 15 sen / 15% from the reference price,” a filing with the bourse said.
The trading in the company’s shares will be enabled tomorrow (Feb 13) at 8.30am.
The company had yesterday proposed a cash call exercise to raise RM550.3 million via private placement and renounceable rights issue to fund its property development projects, involving the issuance of up to 10% of its issued share capital of 1.31 billion shares.
Based on an illustrative price of RM1.20 per share, one rights stock for every four existing E&O stock and one warrant for every two stocks, E&O expects to raise between RM250 million and RM550.3 million.
E&O was last traded at 91 sen, after falling 18 sen or 16.51%. Its market capitalisation stood at RM1.42 billion.