PETALING JAYA: Sentoria Group Bhd has proposed to undertake a rights issue that will raise gross proceeds of up to RM52.8 million, to be used as working capital.
In a filing with Bursa Malaysia today, the group said RM35 million will be used for the group’s property development projects, RM16.8 million for general working capital and the remaining RM1 million for defrayment of estimated expenses in relation to the proposals.
The proposed rights issue involves the issuance of up to 211.2 million new warrants in Sentoria (Warrants B) at an issue price of 25 sen per Warrant B on the basis of four Warrants B for every 10 Sentoria shares.
The board has fixed the exercise price of the Warrants B at 60 sen each.
Sentoria has also proposed to carry out a bonus issue of up to 52.8 million new Sentoria shares to be credited as fully paid-up on the basis of one bonus share for every 10 existing Sentoria shares.
The proposed bonus issue is intended to reward the shareholders of Sentoria for their continuing support and loyalty to the group.
It said that the proposed bonus issue will enable existing shareholders to have greater participation in the equity of the company and is expected to enhance the marketability and trading liquidity of Sentoria shares.
The proposals are expected to be completed in December 2017. Affin Hwang is principal adviser to the company.
Sentoria’s share price closed unchanged at 80 sen today with a total of 10,000 shares traded. Its market capitalisation stood at RM398.38 million.
Source: The Sun Daily