Current market Share price 0.525; now company raise fund via right issue 1 share for every 5 share own at RM1 plus free 5 warrant for every 2 new share take up.......Worth ? Better direct buy from market 0.525 per share
Ho Hup Construction is planning to raise up to RM82.47mil via a renounceable rights issue of redeemable preference shares (RPS) with free detachable warrants to be used for working capital and to repay borrowings.
The rights RPS will have a tenure of five years, with a dividend rate of 5% per annum.
The Board of Directors of Ho Hup Construction Company Berhad (“Ho Hup” or “the Company”) wishes to announce that the Company had on 24 August 2020 accepted the Letter of Award (“LA”) from Dhaya Maju Infrastructure (Asia) Sdn Berhad (“DMIA”) for the design, construction, completion, testing, commissioning and maintenance of the proposed upgrading of Keretapi Tanah Melayu Berhad (“KTMB”) station and facilities for Project Menaiktaraf Kemudahan Infrastruktur Landasan Keretapi Berkembar Di Lembah Klang (KVDT) Fasa 2 (“KVDT Contract”).
The KVDT Contract is for a duration of thirty-six (36) months, from 21 August 2020 to 20 August 2023 at the total contract sum of Ringgit Malaysia One Hundred Thirty-Seven Million One Hundred Twenty-Two Thousand and Nine Hundred Twenty (RM137,122,920.00) only (inclusive of the prevailing Sales and Service Tax).
The LA will have no effect on the issued share capital and substantial shareholders’ shareholdings of the Company. The LA is expected to contribute positively to the revenue, earnings per share and net assets per share of Ho Hup Group and is not expected to have a material effect on the gearing of Ho Hup Group for the financial year ending 31 December 2020 onwards until the expiry of the KVDT Contracts.
The Company does not foresee any exceptional risk other than operational risk associated with the LA during the contract period.
None of the Directors and/or the substantial shareholders of the Company and/or persons connected with the Directors and/or substantial shareholders have any interest, direct or indirect in the LA.
The Board of Directors of the Company is of the opinion that the acceptance of the LA is in the best interest of the Company.
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Peter2357
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Posted by Peter2357 > 2020-07-10 23:05 | Report Abuse
rps redeemable preference share...you lend to HoHup by way of RPS for 5yrs with interest of 5% percyest