KUALA LUMPUR (Feb 13): Icon Offshore Bhd said today its 100-for-1 rights issue with free warrants was oversubscribed by 19.87% of the maximum intended gross proceeds of RM247.21 million.

The offshore vessel operator received acceptances for 1.82 billion shares or 77.35% of the 2.35 billion shares offered, while there was excess applications for one billion rights shares (42.52%).

The two combined represented 119.87% of the 2.35 billion available rights shares, giving an oversubscription rate of 19.87%.

Icon offered the rights shares on the basis of 100 rights shares for every Icon share held, at a subscription price of 10.5 sen apiece.

The rights shares come with free eight-year warrants on the basis of one warrant for every four right shares subscribed, convertible to new Icon shares at 16.5 sen each. The rights shares and warrants are expected to be listed on Feb 20, the group added.

Icon said the bulk of the proceeds raised would be used to repay its borrowings.

It added that with the rights issue, combined with the plan to restructure some RM577.16 million of its debts — last reported at RM619.66 million — it will be able to reduce its gearing from 9.16 times to under 1.4 times.

The group is expecting to complete the whole exercise by this month.

Shares of Icon Offshore closed 3.5 sen or 14% lower at 21.5 sen, giving the group a market capitalisation of RM511.25 million.