Mulpha to raise RM267 million from rights issue

PETALING JAYA: Mulpha International Bhd is planning to raise up to RM266.71 million via a two-call rights issue of 1.07 billion new shares on the basis of one rights share for every two existing Mulpha shares at an indicative issue price of 50 sen per rights share.

In a filing with Bursa Malaysia on Monday, it said proceeds from the proposed rights issue will mainly be used to repay borrowings, as well as for development expenditure and working capital.

Mulpha said the indicative issue price of 50 sen per rights share will be payable in two calls.

The indicative first call of 25 sen per rights share is payable in cash on application and the indicative second call of 25 sen is to be capitalised from the share premium of the company.