KUALA LUMPUR (Jan 11): Eastern and Oriental Bhd (E&O) has fixed the rights issue of irredeemable convertible unsecured loan stocks (ICULS) at an issue price of 23.5 sen per unit.

The conversion price of ICULS has also been fixed at 23.5 sen each, and the conversion ratio is one ICULS for one new share, said E&O in a Bursa Malaysia filing.

E&O aims to raise between RM178.22 million and RM255.76 million fresh capital from the subscription to rights issue, excluding the conversion.

The five-year loan stocks, which offer a coupon rate of 3.8% per annum, is on the basis of three ICULS for every four existing shares held.  

The group said the issue price and conversion price represented a discount of 10 sen or 29.85% to the theoretical ex-rights price of E&O shares of 33.5 sen, calculated based on the five-day volume-weighted average price of E&O shares up to Tuesday (Jan 10) of 41 sen.

Based on the issue price, E&O said the gross proceeds to be raised from the rights issue of ICULS are mainly for the funding of existing and future projects within 36 months, which it set for a minimum scenario of RM150 million and a maximum scenario of RM220 million.

The property developer also set aside RM27.32 million to RM34.86 million for working capital within 24 months and RM900,000 as estimated immediate expenses in relation to the rights issues of ICULS.

E&O’s share price on Wednesday closed up 0.5 sen to 42 sen, valuing the group at RM612.67 million.