MAS rights shares fall again in active trade

KUALA LUMPUR: Malaysian Airline System Bhd's (MAS) rights shares tumbled in very active trade on Wednesday, closing at three sen only, in its second day of trading.
At 5pm, MAS-OR was down seven sen to three sen. It was actively traded with 863 million units done.
The mother share lost three sen to 34.5 sen with 42 million shares done.
The
FBM KLCI closed 2.73 points lower at 1,774. Turnover was 2.34 billion
shares valued at RM2.85bil. There were 391 gainers, 423 losers and 266
counters unchanged.
The rights have a reference price of 17.5
sen, which is derived from the difference between its subscription price
of 23 sen and MAS' shares' closing price of 40.5 sen on Monday.
Under
the corporate exercise to raise RM3.07bil from its shareholders by
issuing the rights shares, where each share was entitled to four rights
shares, each rights share can be converted into a share.
To
recap, MAS issued 13.4 billion rights shares as part of its plan to turn
around the company. It also reduced the par value of its shares to 10
sen from RM1 previously, to set off RM7.86bil in accumulated losses as
well as pare down its share premium.