KUALA LUMPUR (April 18): JKG Land Bhd’s rights issue has been oversubscribed by 27.1% or 410.99 million shares after it received valid acceptances and excess applications of 1.93 billion rights shares.

The group had made available 1.52 billion rights shares for the exercise, on the basis of two rights shares for one existing share held (2-for-1).

The property developer had fixed the rights issue price at 10 sen apiece which would see it raising as much as RM151.7 million from the exercise.

The cash call was to raise funds for its property development projects, expansion plans, and working capital, as well as to repay its short-term bank borrowings.

At the close of acceptance, application and payment for the rights issue at 5pm on April 10, it had received total valid acceptances of 1.34 billion shares or 88.16% of the total rights shares available for subscription, and 590.52 million total valid excess applications, representing some 38.94%.

Its board has approved and allocated the excess rights shares applied for under the exercise on a pro-rata basis based on the quantum subscribed.

It plans to list and quote the rights shares on the Main Market of Bursa Securities Malaysia Bhd on April 21.

At closing, JKG's counter dipped half sen or 4% to 12 sen, valuing the stock at RM91 million.