This article first appeared in The Edge Financial Daily, on January 5, 2016.

KUALA LUMPUR: XOX Bhd has fixed the issue price of its renounceable rights issue of up to 356 million new shares at 20 sen per rights share, which could raise up to RM71.2 million.

In a Bursa Malaysia filing, XOX said it had also fixed the exercise price of the free warrants that will come with the rights shares — on the basis of one free warrant for every one rights share subscribed — at 20 sen each.

XOX announced on Oct 9, 2014, that it would undertake the renounceable rights issue of up to 356 million new shares with the same number of free detachable warrants, on a basis of one rights share for every one existing XOX share.

XOX said the issue price of the rights share was fixed after considering the theoretical ex-rights price (TERP) of XOX shares of 20.46 sen per share, based on their five-day volume-weighted average market price up to and including Dec 31, 2015, of 20.92 per share.

The issue price of the rights shares also represents a 2.25% discount to the TERP of XOX shares. XOX shares closed half a sen lower at 20 sen yesterday, with a market capitalisation of RM71.2 million.

XOX had said the proceeds raised from the rights issue will be utilised for phone bundling expenses, working capital, and to defray expenses related to the exercise.