KUALA LUMPUR (Apr 23): WCT Holdings Bhd has fixed the issue price of its proposed rights issue at RM1 per rights share. It has also fixed the exercise price of its proposed warrants at RM2.08 per warrant (warrant E).

In a filing with Bursa Malaysia today, WCT (fundamental: 0.6; valuation: 2) said the issue price of RM1 per rights share represents a discount of approximately 42.86% to the theoretical ex-rights price after the proposed rights issue of shares of RM1.75, based on the five day weighted average market price of WCT shares up to and including Apr 22, 2015, of RM1.82 per WCT share.

The exercise price of RM2.08 per warrant E on the other hand represents a premium of approximately 18.86% to the theoretical ex-rights price of RM1.75, also based on the five day weighted average market price of WCT shares up to and including Apr 22, 2015, of RM1.82 per WCT share.

To recap, WCT had, on March 16, 2015, proposed to undertake a rights issue of up to 143.23 million WCT shares, on the basis of one rights share for every 10 existing WCT shares held, to raise up to RM143.23 million, primarily for working capital, including repayment to suppliers and sub-contractors.

The group had also proposed a bonus issue of up to 315.1 million new warrants on the basis of one free warrant E for every five existing WCT shares held on an entitlement date to be determined after the completion of the proposed rights issue of shares, to reward its shareholders.

WCT shares close down 2 sen or 1.1% at RM1.80 today, with a market capitalisation of RM1.96 billion.