KNM fixes rights share price at 50 sen, warrant exercise price at RM1

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KUALA LUMPUR (Feb 17): KNM Group Bhd fixed its rights share price at 50 sen apiece to raise up to RM215.25 mllion. The process equipment manufacturer's rights issue issue involves up to 430.49 million new shares on the basis of one rights unit for every five existing shares held.

KNM (fundamental: 0.85; valuation: 1.2) said in its filing with Bursa Malaysia today the price of its rights shares was set at a 29.58% discount to the five-day volume-weighted average market price of 71 sen.

KNM has proposed the cash call to reduce debt and finance working capital needs.

The rights issue comes with 215.25 million new free detachable warrants. One warrant will be given to shareholders for every two rights shares subscribed.

The warrants have an exercise price of RM1.

At 12:30pm, KNM shares slipped 1.5 sen or 2.08% to settle at 70.5 sen for a market capitalisation of RM1.14 billion. A total of 12.42 million shares changed hands.

The stock had risen 44% this year, outperforming the FBM KLCI's 3% gain.

(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.)