KUALA LUMPUR: Well Chip Group Bhd will undertake a renounceable rights issue of up to 120 million new shares in the company to fund the expansion of new pawnshops and for working capital.
It will be on the basis of one rights share for every five existing shares held.
The investment holding company said the proposed rights issue is expected to raise between RM60.8 million and RM120 million, based on an issue price of RM1.00 per rights share.
It said the proceeds would be channelled towards the expansion of new pawnshops within 24 months, while the remaining amount would be used as working capital within 12 months.
“The proposed rights issue would enable the company to raise the requisite funds without incurring additional interest expenses, compared with bank borrowings. The board expects the proposed rights issue to be completed and implemented by the fourth quarter of 2026,” the company said in a stock exchange filing.
CGS International Securities Malaysia Sdn Bhd has been appointed as the principal adviser for the proposed rights issue. – BERNAMA
