KUALA LUMPUR (Jan 10): Shares in Icon Offshore Bhd fell as much as 20% in active trading this morning as soon as an earlier-called trading halt was lifted.
At 10.40 am, a total of 25.53 million shares were traded, making it the second most active counter on the local bourse, with its share price down half a sen or 10% to 4.5 sen.
Trading in the securities of Icon resumed at 10am today after a one-hour trading half was put in place, in relation to its Jan 9 announcements concerning its debt restructuring and cash call exercise.
On Jan 9, CIMB Investment Bank announced on behalf of Icon’s board that in respect of the rights issue with warrants, the board had resolved to fix the entitlement basis to be on the basis of 100 rights shares for every one Icon share held after the entitlement date of Jan 23 at 5pm, and the issue price of the rights shares at 10.5 sen apiece.
“The rights issue price represents a discount of approximately 20.6% to the theoretical ex-rights price (TERP) of Icon shares of 13.2 sen after adjusting for the share consolidation, calculated based on the five-market day volume weighted average market price (VWAMP) of Icon shares up to and including Jan 8, being the last market day immediately preceding the date of this announcement, of 5.7 sen per Icon share.
“The exercise price of the rights warrants (and hence the financiers warrants and the creditor warrants) at 16.5 sen (exercise price). The exercise price represents a premium of 25.0% to the TERP of Icon shares of 13.2 sen after adjusting for the share consolidation as described above,”
Additionally, Icon had also on Jan 9 entered into an underwriting agreement in relation to the rights issue with warrants with several financial institutions.
CIMB Investment Bank Berhad, Hong Leong Investment Bank Berhad, KAF Investment Bank Berhad and Kenanga Investment Bank Berhad will underwrite 357.14 million rights shares, representing approximately 15.2% of the total rights shares available for subscription.
“Due to the determination of the rights issue price and in respect of the issuance to the financiers and the issuance to the creditor, a total of 263.70 million new Icon shares together with 65.92 million new free detachable warrants shall be allotted and issued in a single tranche to coincide with the issuance and the listing of the rights shares and the rights warrants,” it added.
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