Prestariang falls as much as 8% in morning trade

PETALING JAYA: Prestariang Bhd's share price fell as much as 8% in morning trade, on news it will embark on an equity raising exercise to fund the National Immigration Control System (SKIN) project.
The company announced details of the 15 year concession agreement between the company and the Home Affairs Ministry yesterday.
AmBank Research in its note to investors today, said Prestariang management is considering an 80:20 debt-to-equity ratio as the funding structure for SKIN.
At an estimated capital expenditure of RM900 million, the research firm opined that Prestariang may have to raise RM180 million in equity.
"Assuming RM2.00 as the offer price for its equity raising exercise, there would be a potential dilution from the issuance of 90 million new shares," the research house said.
The stock traded at RM2.22 as at 12.05pm, down 16 sen or 6.7%, with some 4.16 million shares traded.
The company is holding a media briefing today.