Pharmaniaga surges on rights issue buzz, trading hits highest in nearly two months
The counter jumped 22.2 per cent to 16.5 sen by mid-morning, emerging as the second most actively traded stock on Bursa Malaysia, with 17.05 million shares changing hands as at 11.35am.
It is Pharmaniaga's busiest trading day in nearly two months, as investors react to the stock's ex-rights pricing.
The rally follows the company's move to raise fresh capital through a heavily dilutive rights issue of up to 3.52 billion new shares at 10 sen each, potentially generating up to RM352.15 million in proceeds.
The renounceable issue is on the basis of 12 rights shares for every five held, with entitlements fixed at 5pm tomorrow.
Rights trading will begin on Thursday, giving shareholders a chance to cash in or double down. Prospectuses and allotment letters are slated for distribution on Friday, while the final day to subscribe or sell the rights is July 17.
Pharmaniaga, a Practice Note 17 company, is banking on the fundraising exercise to stabilise its finances after a turbulent year marked by losses and mounting liabilities.
At 16.5 sen, Pharmaniaga is valued at about RM237.8 million.
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