Posted by newbirds > 2014-07-05 08:41 | Report Abuse

rite bro. got 8 lots need to buy 1 right issue and get 1 free warrant. win win and I see very positive move by management for investor and to reward investors later because of their generous contributions. Inari boleh.

Posted by newbirds > 2014-07-05 08:44 | Report Abuse

Alex inari price going forward sure up kaw kaw this time.

Posted by Hanyou Chong > 2014-07-05 08:54 | Report Abuse

if hold less then 8 lots, can just get an OR for acquire the right issue?

Posted by jimstock > 2014-07-05 10:32 | Report Abuse

"80million proceeds for land, factory, equipment purchase" to me this is M&A acquisition. To buy land build factory then equipmt will take at least 2-3 yr, too slow for inari. I guess this is M&A.

Posted by kenrixx > 2014-07-05 10:42 | Report Abuse

only ppl holding more than 8000 unit entitle for the 1right issue?

Posted by newbirds > 2014-07-05 11:03 | Report Abuse

This is the best option the management propose for the investors and inari at large. they can always go for private placement which benefit certain ppl nia if I am not wrong la.

Posted by newbirds > 2014-07-05 11:04 | Report Abuse

correct kenrixx.

Posted by newbirds > 2014-07-05 11:05 | Report Abuse

M n A coming liao jimstock.

Posted by Benz10 > 2014-07-05 11:07 | Report Abuse

From the announcement "n behalf of the Board of Directors of Inari, M&A Securities Sdn Bhd wishes to announce that Inari proposes to undertake a renounceable rights issue of up to 88,825,648 new ordinary shares of RM0.10 each in Inari (“Rights Shares”) together with up to 88,825,648 free detachable warrants (“Warrants”) at an indicative issue price of RM1.50 per Rights Share on the basis of one (1) Rights Share for every eight (8) existing ordinary shares of RM0.10 each held in Inari together with one (1) Warrant for every one (1) Rights Share subscribed at an entitlement date to be determined later (“Proposed Rights Issue with Warrants”)."

The Warrrant will only given if you subscribed the Right Share. am I right?

Posted by kenrixx > 2014-07-05 11:15 | Report Abuse

thanks newbirds...miss this..hold less :-(

Posted by kemfatt > 2014-07-05 11:58 | Report Abuse

why need to have 8000 units? Inari trade at 100 units. SO surely as long you hold 1000 unit is already entitle for rights issue with free warrant. Do correct me if I am wrong.

Posted by Erica > 2014-07-05 12:01 | Report Abuse

kemfatt : you are right. As long as you hold inari, you are entitle for the right.

Posted by littleshark > 2014-07-05 12:17 | Report Abuse

Yes for those who exercise right will be entitled free warrant. Normally these right issue is put on trading at open market for a specified timeframe where u can buy or sell the right issue. For Inari shh u can opt to sell or exercise those right issue. Previous Inari right issue was traded at a high price when those shh was given an attractive offer for 2free warrants for 1right issue exercised.

Posted by voonyoke > 2014-07-05 12:30 | Report Abuse

In a statement, Inari executive vice chairman Tan Seng Chuan said it is timely to expand the group's manufacturing operations to support rapidly-growing production demands from the wireless telecommunication sector.

Posted by Spanish > 2014-07-05 13:36 | Report Abuse

What is the last date would the 1 for 8 rights issue be implemented?

Posted by Spanish > 2014-07-05 13:39 | Report Abuse

Means if got 8 shares can get 1 right+1 warrant right? And have to pay rm1.50 for every right correct? Anyway how to subscribe to the rights issue? And do we have to pay some more to convert the right to mother share? Or does paying rm1.50 already entitled u to 1 right which will later turn to mother share at no extra cost?

Posted by Spanish > 2014-07-05 13:39 | Report Abuse

Sifus pls comment. Never gotten rights issue before so still new abt this.

Posted by Tina Khoo > 2014-07-05 14:00 | Report Abuse

I got no idea too..still new

Posted by littleshark > 2014-07-05 14:02 | Report Abuse

If u are inari shh u will be entitled 1right issue for every 8share u held. Let say u have 8000 units u will be entitled 1000right issue. Then to fully exercise ur right issue u have to pay RM1.50 x 1000units=RM1500(the original will differ slightly a bit ard 0.5-2% extra due to conversion&finance charges). After u exercise ur right, u will now have 9000units mother share+1000units free warrant(on basis 1 for 1). The mother share will then be adjusted accordingly to thereotical exprice ard 2.97 if not mistaken or at a different price based on closing price of mother shares 1 or 2day before conversion of right to mother. The warrant is tag along with an opening price of RM2 if not mistaken. The final proposal for right issue has yet to be finalised & the details will be announced later. For conversion method pls refer to ur remisier. Either the broker can do for u or u hv to do it by yourself.

Hope my statement above helps u.

Posted by rosetan > 2014-07-05 14:27 | Report Abuse

Correct me if I am wrong. I think Inari will send every shareholder details about the rights issue and free warrant together with a form. If you want the right issues, you need to buy a bank draft and send together with the form to the address specified.

Posted by rosetan > 2014-07-05 14:28 | Report Abuse

Probably no fees involved.

Posted by Alex Leow Sze Shen > 2014-07-05 14:32 | Report Abuse

Inari to raise RM133mil via 1-for-8 rights issue


PETALING JAYA: Inari Amertron Bhd proposes to raise up to RM133.2mil via a renounceable rights issue of up to 88.8 million new shares for its expansion and working capital.

The company said in a statement yesterday that it intended to set aside RM40mil for the expansion of production capacity, including the purchase of land and factories, as well as to expand its existing factories.

It said a further RM40mil would be allocated for the purchase of new equipment and machinery and RM30.5mil for working capital.

“The remaining proceeds of RM22.7mil will be used for defraying bank borrowings and expenses of the rights and free warrants issue,” it said.

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Inari said the 1-for-8 rights issue, at an indicative subscription price of RM1.50 per share, came with one free detachable warrant per rights share at an indicative exercise price of RM2 per warrant.

“The indicative rights issue price represents a 48.5% discount to the theoretical ex rights price of RM2.91, while the indicative warrant exercise price represents a 35.3% discount; both calculated based on the five-day weighted average price of Inari shares up to July 3 of RM3.09 per share,” the company said.

Posted by Alex Leow Sze Shen > 2014-07-05 14:34 | Report Abuse

What is a Rights Issue?

When a company needs to raise capital it may choose to create a new block of shares and offer them to existing shareholders at a discount. The announcement of a rights issue will often result in the share price falling initially because the market will question the motives of the company if it needs to raise money but also because the new shares issued will 'dilute' the existing shares. The company's objective is to provide current shareholders the opportunity to maintain their percentage of ownership of the firm.

Some companies will be raising cash to fund expansion or acquisitions, and shareholders may be keen to participate in a compelling growth story. Alternatively, funds may be required to 'strengthen balance sheets'. This could mean that existing lenders want some of their money back or the company wants to avoid breaching covenants on existing loans. This might not be as compelling to investors as a growth story, but the reasons are no less logical.

Posted by Alex Leow Sze Shen > 2014-07-05 14:35 | Report Abuse

What are the benefits?

With this type of issue existing shareholders are given 'nil-paid rights' which simply provide the right to purchase new shares at a discount to the market price on a stated date.
Until the date at which the new shares can be purchased, shareholders may trade the nil-paid rights in the same way they would trade ordinary shares.
Some companies that offer a rights issue will use the capital to fund activities such as acquisitions that will afford the company future growth. In order to provide assurance that the required capital will be raised, the company will normally have its rights issue underwritten by an investment bank.

Posted by Alex Leow Sze Shen > 2014-07-05 14:37 | Report Abuse

What are the risks?

It is easy to be enticed by shares offered at a discount, but shareholders should not assume that they are getting a bargain. An informed decision should be made by looking at the rationale behind the fund raising exercise.
A company may use a rights issue to cover debt, especially when they are unable to borrow money from other sources. Shareholders should be concerned with whether or not the management are addressing any underlying problems.
If you decide not to take up the rights your overall shareholding in the company will be diluted as a result of the increased number of shares in issue.
If you do not participate in the rights issue within the specified time-frame your nil-paid rights will lapse. The company will sell these entitlements and distribute any net proceeds after deduction of the offer price and costs. The amount of lapsed proceeds, if any, will not be known until the offer has closed. Lapsed proceeds are not guaranteed.
Investments and income arising from them can fall in value and you may get back less then you originally invested.

Posted by littleshark > 2014-07-05 14:50 | Report Abuse

Thanks for the sharing Alex. Cant really remember theor ex right price is 2.91 or 2.97.
Yup Rosetan Inari will send u the proposal & u hv to buy the bank draft,fill in the form & send back to them. Since im using a nominee account I have my broker done the part for me with some processing fee incur.

Posted by littleshark > 2014-07-05 14:57 | Report Abuse

Sorry some amendment on my statement. The rm2 i mentioned earlier is on the indicative exercise price for warrant & not the opening price.The opening price will be adjusted accordingly based on the mother share.

Posted by starbuy > 2014-07-05 15:13 | Report Abuse

Definitely a good news, as mgmt will keep mother share share price above the ex right price? Am i right to say so?

Posted by newbirds > 2014-07-05 15:14 | Report Abuse

Very well explain by alex n littleshark here.

Posted by lee9fold > 2014-07-05 15:17 | Report Abuse

holder of warrant who dont 1 to convert to mother share to subscribe right share also ok...the number of existing shares of warrant will be adjusted and to be increased accordingly...that means the warrant price will be diluted after the exercising of right issue but at the same time the number of warrant shares on your hand also increased.

Posted by Spanish > 2014-07-05 15:55 | Report Abuse

since the rights issue enables one to buy 1 share at just Rm1.50. Then I guess everybody would be rushing to buy more mother shares i presume? Since buying more mother enables you to buy more rights? isnt that so?

Posted by Spanish > 2014-07-05 16:01 | Report Abuse

i just worry things like what if the letter from Inari arrives late then I tak sempat send my application to buy the rights? oh my god!!! I live in east malaysia...i always have assumption snail mail will be even slower if they have to cross the south china sea :(

Posted by Tornado > 2014-07-05 16:10 | Report Abuse

It will be good to hold the mother share with a min. of 800 units or subsequently with a number which is divisible by 8 so that you will not end up with odd number lot.

eg min mother 800 units => rights 100 units
1600 => 200 units

& so forth

Posted by Spanish > 2014-07-05 16:10 | Report Abuse

The thing Im most curious is when is the last date to buy Inari shares which entitles you to the 1 for 8 rights? Cos I plan to buy some more mother shares if still able to get the rights. I dont want to buy next week then suddenly realise that the new shares I bought not entitled to the rights. Cos money is a bit tight now if I decide to buy some more mother. If not entitled to the rights already then I can keep my money.

Posted by Tornado > 2014-07-05 16:11 | Report Abuse

am i right ?

Posted by Spanish > 2014-07-05 16:15 | Report Abuse

tornado, i think if u get option to buy 120 rights for example, of cos u just buy 100 rights la...of coz u wont buy the 20 rights...so how is it possible to end up with odd number le...but if u r fussy abt the odd number, maybe can buy more mother shares...like what i am thinking of now...coz my shares end up with odd number of rights lol

Posted by lloydlim > 2014-07-05 16:32 | Report Abuse

Should increase my stock on mother by coming Monday!

Posted by AyamTua > 2014-07-05 17:17 | Report Abuse

alternative solution: seacera - another inari like fast moving power horse

Posted by dextronium > 2014-07-05 19:11 | Report Abuse

Dear all
If I wish to convert INARI WA to INARI share, what are the additional fees I should pay for this?

I have read through the Warrant Exercise Form and I think that I have to pay some fees for the conversion, no sure to my Investment Bank or Share Registrar (ie processing fee, or any other fees?)

Is the conversion considered done on my side if I have filled in the form and sent it to the Share Registrar together with the conversion price of 38 sen per unit ? How long usually it will take for me to receive the newly issued shares?

As this is my first conversion, please kindly advice.

Thanks in advance

Posted by hgling > 2014-07-05 21:39 | Report Abuse

Buy warrant now & get it converted to mother to entitle for the right issue will make slightly higher profit based on current price different.

Posted by lloydlim > 2014-07-05 22:20 | Report Abuse

Yup buy more son than mother so that could earn more during conversion.

Posted by newbirds > 2014-07-05 22:21 | Report Abuse

Can payment be done through e banking like new IPO.

Posted by rosetan > 2014-07-06 00:29 | Report Abuse

dextronium,besides the form and conversion price (by Bank Draft), you have to pay a processing fee of RM20 (by cheque). Sent the form, bank draft and cheque to the address given in the form. The conversion will take about 10 working days.

Posted by rosetan > 2014-07-06 00:31 | Report Abuse

If anyone wish to convert wa to share, you will need to do so before the ex-date is announced. You may not have enough time to convert after the ex-date is announced.

Posted by Nancy Yap > 2014-07-06 07:24 | Report Abuse

Convert wa better or buy mother now better??any sifu can advise?

Posted by ktrader > 2014-07-06 07:42 | Report Abuse

If convert, the pice is 2.70+0.38=3.08 and the current price is 3.13.....

Posted by dextronium > 2014-07-06 10:11 | Report Abuse

Dear Ms Rosetan
to whom I should pay the processing fee? It was not stated in the form. Thanks again for your kind time and input.

Posted by Raymond Ng > 2014-07-06 10:57 | Report Abuse

i would like to ask, if i still keep the warrant after the right issue, will the price drop to the adjusted price?

Posted by newbirds > 2014-07-06 11:49 | Report Abuse

I wonder what is sifu wangge up to......need u to comment on rights issue prospective .

Posted by wangge > 2014-07-06 12:12 | Report Abuse

Newbirds, Jimstock asked Friday liau, Wangge replied liau ! Post suggestion again,
to gain maximum hold mother, to get right and free son. If I see better secret plan will share you ya!