This article first appeared in The Edge Financial Daily, on March 15, 2016.

KUALA LUMPUR: Wire and cable manufacturer Ho Wah Genting Bhd’s rights issue with free warrants was undersubscribed by 294.98 million shares or 49.07%, almost half the 601.15 million rights shares it made available for subscription.

In a bourse filing yesterday, it said at the close of acceptance on March 9, total valid acceptances and valid excess applications received for its cash call was 306.17 million rights shares, together with 244.94 million warrants, which represent a subscription of 50.93% of the rights shares.

Valid acceptances received were 229.68 million shares or 38.21%, while the valid excess applications were 76.49 million shares or 12.72%.

The minimum subscription level for the rights issue was 200 million shares.

The rights shares come with free detachable warrants, on the basis of four warrants for every five rights shares subscribed at an issue price of eight sen per rights share, and was undertaken to recapitalise the company after its par value reduction exercise completed on Jan 7.

Ho Wah Genting said it will allot the shares with warrants to all successful applicants who have applied for the excess rights shares with warrants.

As the acceptances and excess applications received fall below the maximum issue size of 601.15 million rights shares, the issue size of the rights issue with warrants shall be based on 306.17 million rights shares and 244.84 million warrants, with fractional warrants disregarded.