KUALA LUMPUR (Nov 20): D'nonce Technology Bhd's rights shares issuance exercise, which comes with free warrants, has been oversubscribe by 51.75%.

D'nonce said that as at Nov 16, the closing date of the application and payment for the rights issue, total valid acceptances and excess applications received for the rights shares were 136.89 million rights shares, or approximately 151.75% of the rights shares available for subscription, which represent an oversubscription rate of 51.75%.

Total rights shares available for subscription amounted to 90.2 million.

"The rights shares, bonus shares and warrants are expected to be listed and quoted on the Main Market of Bursa Securities on Nov 30, 2015," D'nonce said in a filing to Bursa Malaysia today.

D'nonce is principally engaged in contract manufacturing, customised packaging and design as well as sales and distribution services catering to semiconductor, data storage, consumer electronics, medical products, consumer products and telecommunications industries.

On March 2, D'Nonce proposed a renounceable rights issue of up to 90.2 million new ordinary shares of 25 sen each in D'Nonce (rights shares) on the basis of two rights shares for one ordinary share of 25 sen each held after the proposed par value reduction, together with up to 90.2 million free detachable warrants on the basis of one warrant for every one rights share subscribed to raised up to RM22.6 million.

The gross proceeds will be used to partly finance the purchase of land and factory building, renovation and refurbishment expenses (RM2.40 million), construction of clean room facility and purchase of three lines of tray cleaning systems in Thailand (RM4.40 million), construction of new factory building in Penang (RM1.6 million) and Thailand (RM2.2 million), renovation and refurbishment of factory building in Penang (RM1 million), and working capital.

Shares in D'nonce closed flat at 21 sen, for a market capitalisation of RM37.9 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.)