Hot Stock XOX gains 2.5% after fixing rights issue price

by **Cals** Tue 05 Jan 2016, 18:39

Hot Stock
XOX gains 2.5% after fixing rights issue price
By Surin Murugiah / theedgemarkets.com | January 5, 2016 : 9:40 AM MYT

KUALA LUMPUR (Jan 5): Shares of XOX Bhd ([You must be registered and logged in to see this image.] Valuation: 0.20, Fundamental: 1.55) rose 2.5% in early trade today after the company fixed the issue price of its renounceable rights issue of up to 356 million new shares at 20 sen per rights share, which could raise up to RM71.2 million.
At 9.20am, XOX rose half a sen to 20.5 sen with 7.46 million shares done.
The group announced today that it has also fixed the exercise price of the free warrants that will come with the rights shares — on the basis of one free warrant for every one rights share subscribed — at 20 sen each.
To recap, XOX had announced on Oct 9, 2014 that it would undertake the renounceable rights issue of up to 356 million new shares with free detachable warrants, on a basis of one rights share for every one existing XOX share.
XOX said the issue price of the rights share was fixed after considering the theoretical ex-rights price of XOX shares of 20.46 sen per share based on their five day-volume weighted average market price up to and including Dec 31, 2015 of 20.92 sen per share.
(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.)