Malayan Flour Mill’s rights issues oversubscribed

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KUALA LUMPUR (Jan 22): Malayan Flour Mills Bhd’s (MFM) two rights issues to raise RM275.1 million have been oversubscribed.

The first issue, involving the issuance of 5% redeemable convertible unsecured loan stocks (RCULS), saw an oversubscription of 7.03%, MFM said in a filing today.

The group said it received valid acceptances and excess applications for 176.69 million units of RCUL over the total number of 165.08 million units available.

The second rights issue, meanwhile, attracted applications for  222.03 million shares over the total number of 220.11 million available, giving an oversubscription rate of 0.87%.

The cash call is intended for the expansion of its poultry processing plant, construction of a new aqua feed milling plant, the extension of an existing jetty, as well as to pare down its revolving credit facilities.

The RCULS issue entails the issuance of up to RM165.1 million in nominal value of five-year RCULS at 100% of its nominal value of RM1. MFM’s shareholders are entitled to the RCULS on a basis of three loan stocks for every 10 existing shares. With every two RCULS subscribed, shareholders will be given one bonus share and one free warrant.

Meanwhile, the rights issue of ordinary shares will be done on the basis of two rights shares for every five existing shares, sweetened by one bonus share and one free warrant for every four rights shares.

Shares of MFM closed unchanged today at 62.5 sen, for a market capitalisation of RM343.93 million.