KUALA LUMPUR (March 10): Malaysia Building Society Bhd (MBSB) is proposing a renounceable two-call rights issue of new shares to its entitled shareholders, on a basis and issue price to be determined and announced later, to raise gross proceeds of up to RM2 billion.

In a filing with Bursa Malaysia today, MBSB said the issue price of the proposed rights issue will be payable in two calls.

The first call will be payable in cash on application by the entitled shareholders who subscribe for the rights shares, and the second call shall be capitalised from the company’s share premium and/or retained earnings account.

By capitalising the share premium and/or retained earnings account, the entitled shareholders who subscribe for the rights shares will only be required to make a cash payment for the first call.