Inari prices rights issue at RM1.50 per share

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KUALA LUMPUR (Oct 21): Inari Amerton Bhd has priced its proposed 1-for-8 rights issue at RM1.50 each, which represents a discount of 35.62% from the theoretical ex-rights price of RM2.33.

Meanwhile, it has also fixed the exercise price of the free warrants, which will be allocated on the basis of one warrant for every rights shares subscribed, at RM2.

"The rights issue affords the group a cost efficient means to meet our capital expenditure requirements, at the same time strengthening our cash flow," said executive vice chairman Tan Seng Chuan in a previous announcement.

Tan added that it is timely to expand the group's manufacturing operations to support rapidly-growing production demands from the wireless telecommunications sector.

Of the estimated proceeds of RM133.2 million from the rights issue, Inari will allocate RM40 million for the expansion of production capacity; RM40 million for the purchase of new equipment and machineries; and RM30.5 million for working capital purposes.

The remaining proceeds of RM22.7 million will be used for defraying bank borrowings and expenses of the rights and free warrants issue.

Inari closed 1 sen higher at RM2.71, with a market capitalisation of RM1.64 billion.