This article first appeared in The Edge Financial Daily on May 24, 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 third time this year.

The stock closed 3.5 sen or 11.48% lower at 27 sen yesterday, with 101.08 million shares done, compared with the average 6.69 million shares recorded in the past 200 days.

On May 7, the group 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.

It said 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.

Meanwhile, its three-for-one rights issue of 914.83 million ICPS was 110.67% subscribed. The ICPS have an issue price of five sen each.

The bulk of the proceeds raised — RM43.19 million — will be used to fund its property development project.