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Tuesday, 21 March 2017 | MYT 1:45 AM

IOI Prop’s rights issue to raise RM1.5bil oversubscribed

KUALA LUMPUR: IOI Properties Group Bhd’s (IOI Prop) renounceable rights issue, aimed at raising funds to repay bank borrowings totalling RM1.52bil, has been oversubscribed by 37.45%.

AmInvestment Bank, on behalf of its board, announced to Bursa Malaysia that as at the close of acceptance and payment at 5pm last Friday, the company had received total valid acceptances (including valid excess applications) of 1.506 billion rights shares.

The rights shares are issued at RM1.38 apiece. The total proceeds received from the valid acceptances and excess applications amounted to RM2.079bil.

The over-subscription monies totaling RM558.34mil will be refunded.

IOI Prop, which last November successfully tendered for a 1.09ha parcel of leasehold land in Singapore for S$2.57bil (RM8.14bil), has said that it would use the proceeds from this rights issue to repay the group’s borrowings and/or the borrowings to be obtained to fund the tender consideration.

IOI Prop shares closed at RM2.04 on Monday, up 4 sen with 5.27 million shares changing hands.