Hot Stock Xingquan slumps 14.81% on renounceable rights issue plan

by **Cals** Mon 28 Sep 2015, 17:52

Hot Stock

[size=28]Xingquan slumps 14.81% on renounceable rights issue plan

By Surin Murugiah / theedgemarkets.com | September 28, 2015 : 9:29 AM MYT

KUALA LUMPUR (Sept 28): Shares of Xingquan International Sports Holdings Ltd ([You must be registered and logged in to see this image.] Valuation: 3.00, Fundamental: 1.95) slumped 14.81% in early trade today after it proposed a renounceable rights issue with warrants to raise RM50.71 million to buy machinery.

At 9.11am, Xingquan lost 9.5 sen to 47 sen with 303,600 shares traded.

In a filing with Bursa Malaysia last Friday, the group said the proposed rights issue entails the issuance of up to 253.55 million shares on the basis of one rights share for every two existing shares held.

The rights issue came together with up to 84.52 million free detachable warrants on the basis of one warrant for every three rights shares subscribed.

The entitlement date will be determined later by the board, it said.

Based on the indicative issue price of 30 sen per right share and exercise price of 40 sen for each warrant, Xingquan expects to raise up to RM50.71 million from the corporate exercise, which will be used for purchasing machinery (RM49.71 million).

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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