Green Packet Bhd Wants To Collect RM328.37 Million Using This Step - Kakiforex.com - Financial Market Media No. 1 in the World Green Packet Bhd Wants To Collect RM328.37 Million Using This Step Green Packet Bhd Wants To Collect RM328.37 Million Using This Step

May 19, 2021

Green Packet Bhd Wants To Collect RM328.37 Million Using This Step

 Green Packet Bhd (GBP) intends to issue a new releasable ordinary share rights along with free releasable warrants to raise RM328.37 million.


In a notification to Bursa Malaysia yesterday, the telecommunications company; media and technology said the proposed rights issue is expected to be made based on an indicative issue price of RM0.34 per share.


“However, the final issue price must be determined and set by the board of directors and announced at a later date after obtaining all relevant approvals.


"This may involve the indicative issuance of up to 965.80 million rights shares along with up to 643.86 million warrants based on the indicative eligibility basis of three rights shares for every five existing GPB shares, held together with two free releasable warrants for every three rights shares subscribed," he said. as reported by Bernama.



As of May 6, GPB's total issued share capital was RM305.19 million, comprising 1.26 billion shares including 7.70 million treasury shares.


Add to that, the proposed rights issue with warrants is the most suitable channel to raise the necessary financing without incurring interest expense compared to bank loans.


In addition, the proposed implementation is expected to strengthen the company's financial position and capital base by increasing its net assets including providing greater financial flexibility.


The move will also strengthen the company's overall financial position as this will boost shareholders' equity, including strengthening its capital base.


"The increase in the number of GPB shares arising from the issuance of rights shares and the exercise of warrants into the new GPB is expected to dilute the company's loss per share," he explained.