KUALA LUMPUR (July 21): The shares of property developer Sunsuria Bhd fell 6.25% in morning trade today, despite news of an announcement of over subscription of its rights issue by 14.05%.

At 10.59am, its shares were down 6 sen to RM1.06, making it one of the top losers across the bourse. The stock fell to a low of 7 sen or 6.25% to RM1.05 in morning trades.

Yesterday (July 20), Sunsuria announced in a filing to Bursa that it had offered a total of 475.08 million new shares in Sunsuria at 80 sen per rights share on the basis of three new shares for every one share held, together with 158.36 million free warrants on the basis of one warrant for every three rights shares subscribed.

The company targets to raise RM433.49 million.

Sunsuria (fundamental: 2.5; valuation: 0) said as at the close of acceptance on July 10, 2015, it received applications for 541.86 million shares together with 180.62 million warrants, representing an over-subscription of 14.05%.

It added that the over-subscription monies received, totaling RM53.42 million, will be refunded.

The rights shares and warrants are expected to be listed on Bursa Malaysia on July 27, 2015.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)