This article first appeared in The Edge Financial Daily on May 17, 2019

Vortex Consolidated Bhd (-ve)

TRADING of shares in Vortex Consolidated Bhd (fundamental: 1.8/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the second time this year. It closed up one sen or 3.64% at 28.5 sen, after some 76.69 million shares were done, above its average trading volume of 6.15 million over the past 200 days.

On May 7, Vortex said both its rights issue of shares with warrants and rights issue of irredeemable convertible preference shares (ICPS) to raise RM54.89 million had been oversubscribed. Its one-for-five rights issue of 60.989 million new shares was 122.18% subscribed. The rights shares at an issue price of 15 sen apiece come with one free warrant each. From the rights share subscription, 91.47% represented valid acceptances while 30.71% represented total valid excess applications, translating into an oversubscription of 22.18%, Vortex said.

Its three-for-one rights issue of 914.83 million ICPS at an issue price of five sen each was 110.67% subscribed. Valid acceptances of the ICPS rights issue stood at 69.09% while excess applications stood at 41.58%, representing an oversubscription of 10.67%.