KBB rights issue oversubscribed by 27%

KUALA LUMPUR (Jan 24, 2014): Malaysia's largest vermicelli manufacturer, KBB Resources Bhd (KBB), renounceable rights issue of up to 120 million shares was oversubscribed by 27.26% or 32,712,266 shares.
At the close of acceptance and payment for the rights issue on Jan 16, this year, the group received applications for 152.7 million rights shares worth a total value of RM27.49 million for 120 million rights shares priced at RM0.18 per share each, together with 120 million free Warrants.
KBB group managing director Datuk Seri Chin Seak Huat said the exceptional response to the group's rights Issue reflect shareholders' strong confidence in KBB and the group's expansion plans going forward.
"The rights issue with free Warrants will strengthen our group's financial position with enhanced shareholders' funds.
These factors are expected to facilitate the continuous business expansion plans of our group," he added.
The corporate exercise, which was on the basis of one rights share for every one existing share held as at Dec 30, 2013, raised RM21.60 million in proceeds. These funds would be used to help finance the group's working capital mainly to finance the growth of its existing business which includes purchase of raw materials, capital expenditure and expenses relating to the proposals.
The rights shares and warrants will be listed on the Main Market of Bursa Malaysia Securities Bhd on Jan 29, this year.