Saturday 30 Mar 2024
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KUALA LUMPUR: Oil and gas outfit Daya Materials Bhd’s proposed share placement will raise less funds than  originally hoped, following the recent slide in its share price.

Its counter dipped 37.14% from a high of 35 sen on Aug 13 to 22 sen on Nov 12. It closed 2.27% higher at 22.5 sen yesterday, giving it a market capitalisation of RM312.48 million.

Daya Materials said in a filing with Bursa Malaysia yesterday that it had agreed to revise the subscription price of its placement shares through letters dated yesterday to Datuk Lim Thean Shiang and Norzain Abdul Wahab after receiving requests from the duo on the same day.

Lim and Norzain, through statements dated yesterday, had requested the company to reconsider the subscription price of 26.5 sen per share, “given that the share price has declined by 15.1% from the agreed subscription share price of 26.5 sen to close at 22.5 sen on Nov 11, 2014”.

The company has allocated 100 million placement shares to be placed out to Lim, with another 50 million to Norzain.

“Datuk Lim and Norzain had proposed that the subscription price for the allocated placement shares be fixed at no more than a 10% discount to the volume weighted average price of [Daya Materials] shares for the five market days prior to the date of the EGM (extraordinary general meeting) for the proposed placement.”

To recap, Daya Materials on Sept 25 received an offer letter from Lim offering to subscribe to 100 million placement shares at 26.5 sen apiece, amounting to RM26.5 million. 

On Oct 1, Daya Materials similarly received an offer letter from Norzain offering to subscribe to 50 million placement shares at the same price for RM13.25 million.

 

This article first appeared in The Edge Financial Daily, on November 14, 2014.

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