Tadmax rights issue share priced at 40 sen each

PETALING JAYA: Tadmax Resources Bhd has fixed the issue price for its rights shares at 40 sen apiece.

The issue price of 40 sen per rights share represents a discount of 8.05% from the theoretical ex-rights price of Tadmax shares upon completion of the rights issue with warrants of 43.5 sen per share (TERP) calculated based on the five-day volume weighted average price of Tadmax shares up to May 19, 2017 of 44.9 sen, being the market day immediately preceding the date of the price fixing date on May 22, 2017 (5D-VWAP).

The board has also fixed warrants at 40 sen per warrant for the first four years of issuance, which represents a discount of 10.91% and 8.05% to the 5D-VWAP and TERP respectively; and 50 sen per warrant for the end of the fourth anniversary of the issue date up to the maturity date of the warrants, which represents a premium of 11.36% and 14.94% to the 5D-VWAP and TERP respectively.

Tadmax had proposed to undertake a rights issue with warrants to raise a minimum proceeds of RM50 million for its property development business, repayment of bank borrowings and future investments.

Last week, Tadmax placed out 24.46 million new shares, under the first tranche, at 41.5 sen a share. The shares were listed with effect from last Friday.