Wednesday February 6, 2013
Mah Sing gets nod for rights, bonus issues
PETALING JAYA: Mah Sing Group Bhd’s shareholders have approved the company’s renounceable rights issue with free warrants, and a one-for-five share bonus issue.
The entitlement date for the rights issue with free warrants is expected to take place by end-February, while the closing date for the acceptance of the rights and excess application is by mid-March.
The new rights shares and warrants are expected to be listed by the end of March.
Mayang Teratai, a major shareholder of Mah Sing, was expected to take up to 50% of the rights issue, said Mah Sing in a statement.
The fund-raising exercise is projected to raise up to RM400mil, which will part-finance its property development expenditure, future land acquisitions and general working capital requirements.
“This is part of our prudent management of capital structure to maintain a healthy and optimum capital base.
“Besides improving the liquidity and marketability of Mah Sing’s shares, we are also taking the opportunity to reward our shareholders, as they can acquire new shares at a discount of at least 25% to prevailing market prices as well as enjoy bonus shares,” said group managing director Tan Sri Leong Hoy Kum in the statement.
Meanwhile, Mah Sing said it had set a sales target of at least RM3bil for 2013, a 20% increase from 2012.
“Greater KL and Klang Valley will make up the bulk of 2013 sales target at 62%. Johor Baru is expected to contribute 20%, Penang island 13% and the balance 5% from Sabah,” it said.