KUALA LUMPUR (Nov 14): PMB Technology Bhd’s share price tumbled for a second day running today, after unveiling its plans for a rights issue.

Earlier today, the aluminium manufacturer and distributor’s shares dipped as much as 44 sen or 9.9% to RM4.01.

As at 12.01 pm, the stock pared some earlier losses, but was still down 7.9% or 35 sen to RM4.10. Some 601,800 shares were seen exchanged — compared with its 200-day average trading volume of 104,045 — for a market capitalisation of RM328 million.

Last Friday, the company had filed with the stock exchange, announcing its plans for a one-to-two share split, followed by a renounceable rights issue with free warrants.

The renounceable rights issue will involve the issuance of five-year, 3% irredeemable convertible unsecured loan stocks (ICULS).

PMB Technology said the corporate exercise will help raise funds of about RM200 million — over half the company’s current market value — to be invested into a new metallic silicon manufacturing plant.

On Monday, the counter saw a big sell-off that pushed down its price by 25 sen or 5.3% to close at RM4.45, despite reporting stronger quarterly earnings that same day.

For its third quarter ended Sept 30, 2017 (3QFY17), PMB Technology said net profit came in 9.1% higher at RM2.45 million, compared with RM2.25 million a year ago, while revenue rose 49.3% to RM127.49 million, from RM85.42 million in 3QFY16.

The company attributed its stronger quarterly earnings to higher contribution from its construction and fabrication segment, on the back of accelerated progress in its ongoing projects during the quarter.