KUALA LUMPUR: OCR Group Bhd says its renounceable rights issue with free warrants was oversubscribed by 101.1 per cent, raising RM46.8 million in gross proceeds.
The rights issue involved up to 1.3 billion new shares at 3.5 sen per share, with two rights shares and two free detachable warrants for every three existing OCR Group shares held.
"The rights issue received total applications for 1.35 billion shared worth RM47.3 million, underscoring investor confidence in OCR's growth strategy," the property developer said.
The rights shares and warrants are scheduled to be listed on the Main Market of Bursa Malaysia on Oct 7.
OCR managing director Billy Ong Kah Hoe said the oversubscription underscores investors' confidence in the company's growth potential.
"The capital raised will accelerate the development of our project pipeline of over RM2.0 billion, including key projects like Kyra in Shah Alam, OCR Templer at Rawang, and Vertex Kuantan City Centre," he said.
The company said 80.3 per cent of the proceeds will be used to fast-track the development of key projects.
The remaining 10.7 per cent will go towards improving OCR's financial standing by repaying RM5.0 million in borrowings.
Another 9.0 per will be allocated mainly (6.4 per cent) for working capital requirements, with the balance (2.6 per cent) to cover the expenses of the corporate exercises.