Hot Stock EA Holdings jumps 9% on rights issue, free warrants

by **Cals** Tue 18 Mar 2014, 14:31

Hot Stock EA Holdings jumps 9% on rights issue, free warrants

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 18 March 2014 11:53

KUALA LUMPUR (Mar 18): EA Holdings Bhd (EAH) rose as much as 9% after the ICT firm proposed a rights issue of new shares which comes with free warrants.

At 11.43am, EAH was traded unchanged at 17.5 sen with some 14 million shares done. The bourse's second most-active stock had earlier gained as much as 1.5 sen to 19 sen.

"It is due to the announcement," a dealer told theedgemalaysia.com over telephone today.

Analysts had earlier anticipated EAH to attract market attention on the news.

"Stocks that may be of added interest today include EA Holdings, which has proposed to undertake a 1-for-1 rights issue at an issue price of RM0.10 per rights share, together with free detachable warrants on the basis of 1 free warrant for every 2 rights shares," HwangDBS Vickers Research Sdn Bhd wrote in a note today.

Yesterday, EAH said it planned to undertake a renounceable rights issue of up to 635.9 million new shares in the company. EAH said the exercise would be undertaken on the basis of one rights unit for one existing share held.

The company also proposed to distribute up to 318 million free warrants on the basis of one free warrant for every two rights shares.

Earlier, EAH had on March 3 this year completed its bonus warrant issue with the listing of the 94.5 million units on Bursa Malaysia.

EAH had distributed two warrants for every nine existing shares held in the firm.