MY Dealbook: PNE calls off while RHBCap delays $570m rights issue; XingQuan to raise $11.5m

RHB Capital Bhd CFO Yap Choi Foong and group MD Khairussaleh Ramli .

Rights issue and private placements have been a theme among a few Malaysian companies the past three days, as some like PNE PCB have the exercise called off, or RHBCap had a $570 million rights issue delayed on the central bank’s call. China-based XingQuan will proceed with its right issue, however.

PNE cancels private placement of 10% issued, paid-up capital

PNE PCB Bhd has decided against proceeding with the private placement of up to 10 per cent of the group’s issued and paid-up capital exercise after assessing the current market conditions.

In a filing to Bursa Malaysia on Friday, PNE said the application for an extension of time to complete the implementation of the proposed private placement dated September 8, 2015 has been retracted from Bursa Securities.

The proposed private placement had lapsed on September 23, 2015.

On March 18, PNE had proposed a private placement of up to 6.57 million new ordinary shares of MYR1 each in PNE, representing up to 10 per cent of the issued and paid-up share capital of PNE, to investors.

The private placement exercise was aimed to raise working capital for the group’s existing business.

XingQuan plans rights issue raising MYR50.7m ($11.5m)

China-based shoe maker XingQuan International Sports Holdings Ltd is planning to undertake a one-for-two renounceable rights issue with free warrants, at an entitlement date to be fixed later, that could raise up to MYR50.71 million for business expansion.

Prior to the rights issue, it plans to first reduce the par value of its shares by 90 per cent or 9 US cents from each 10-cent share, to be effected on a date to be determined, its filing to Bursa Malaysia showed.

Its authorised share capital as at September 8, 2015 is $100 million, divided into 1 billion shares of 10 US cents each, of which 338.06 million have been issued and fully paid-up.

On the completion of the proposed par value reduction, its number of issued and paid-up shares will remain the same, but will be 1 cent each, resulting in its issued and paid-up share capital to shrink from $33.806 million to $3.3806 million; its authorised share capital shall remain $100 million, but divided into 10 billion shares of 1 cent each.

Meanwhile, the rights issue entails an issuance of up to 253.55 million shares at an issue price to be determined, on the basis of one rights share for every two existing Xingquan shares held, its filing with Bursa Malaysia yesterday showed.

The rights issue will come with up to 84.52 million free detachable warrants, at an exercise price to be fixed, on the basis of one warrant for every three rights shares subscribed.

RHBCap to delay rights issue, on central bank’s order

RHB Capital Bhd (RHBCap) has to delay its MYR2.5 billion ($570 million) rights issue by nearly two months as the banking group needs to consult the relevant regulators with regards to the central bank’s order to cap Aabar Investment PJS’ subscription entitlement.

Recall that RHBCap had announced on September 17 that Bank Negara Malaysia, the central bank, had told the group to limit Aabar’s subscription option to only 15 per cent of its rights issue, instead of 21.9 per cent as per its shareholding entitlement.

“… the entitlement date for the rights issue has now been extended from October 1 to November 23, 2015 to allow time for the board to engage with the relevant regulators and to deliberate and implement the rights issue in the most efficient manner, after considering the order,” RHBCap said in its filing to Bursa Malaysia on Wednesday.

“The board may, however, announce further extension(s) to the book closure date at a later date, should the company require additional time to implement the rights issue.

“The board also wishes to highlight that the total number of rights shares to be issued is subject to further changes, in order to give effect to the order,” it added.

Also read:

RHB Capital: No merger talks with AMMB

RHB division launches income fund in Singapore

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.