Posted on 02 Jun 2015
In its filings with Bursa Malaysia, the steel pipe manufacturer said it had planned for a renounceable rights issue of up to RM213.72mil worth of five-year 5% redeemable convertible unsecured Islamic debt securities (RCUIDS) on the basis of two RCUIDS for every five Hiap Teck shares held on the entitlement date, together with up to 320.58 million new warrants on the basis of three new warrants for every four RCUIDS subscribed.
Hiap Teck’s proposed bonus issue would involve up to 213.72 bonus shares on the basis of one share for every two RCUIDS subscribed pursuant to the proposed rights issue.
“In summary, for every 100 Hiap Teck shares held by the entitled shareholders, the entitled shareholders’ entitlements pursuant to the proposed rights issue and proposed bonus issue would be 40 50-sen nominal value of RCUIDS amounting to RM20 together with 30 new warrants and 20 bonus shares,” Hiap Teck said in its statement.
The group’s corporate exercise would see an increase in the authorised share capital from RM1bil comprising two billion Hiap Teck shares to RM2bil comprising four billion of the company’s shares.
For the six months to March, Hiap Teck slipped into a net loss of RM3.24mil, from a net profit of RM21.34mil in the previous corresponding period. Its loss per share stood at 0.45 sen, compared with an earnings per share of 3.01 previously.
The group’s losses were due mainly to unrealised foreign currency loss arising from foreign currency shareholders’ loan.
During the period in review, Hiap Teck’s revenue rose 14.9% to RM608.57mil from RM529.58mil, as both the group’s trading and manufacturing divisions reported better sales volume despite facing keen competition domestically as well as internationally.
