let's say knm wanna issue rights at subscription price rm1 they just need to push the price beyond rm 1.00, example rm 1.10, don't have to do the par value reduction to rm 0.50 right?
if they reduce the par value to rm 0.50, they can issue rights with subscription price with a minimum of rm 0.50, example rm 0.80, and after that it could potentially dilute the share price with the newly issued shares
i didn't see the rationale of it pushing beyond rm1.00, if the rumored rapid project is not taken into consideration
the project is surely secured...... thats why they need to the PVR (par value reduction) 1st, then fund raising via rights issue....... the fund raising purpose is to fund the RAPID project..... step by step taken...... fund raising is a must becoz project very high cost lor......
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
FX Lee
5,194 posts
Posted by FX Lee > 2014-04-14 10:24 | Report Abuse
90.5 cent resistance