KUALA LUMPUR (Jan 6): Classita Holdings Bhd, formerly known as Caely Holdings Bhd, proposed a five-for-two rights issue priced at 10 sen each, sweetened by free warrants, to raise between RM30 million and RM96.54 million, mainly to fund its property development and construction business.

The five-year free detachable warrants will be issued on the basis of three warrants for every five rights shares subscribed, the group said in a stock exchange filing on Friday (Jan 6).

The corporate exercise will involve issuance of up to 965.4 million rights shares and up to 579.24 million warrants, whose exercise price is fixed at 20 sen each.

As on Thursday (Jan 5), the group has an issued share capital of RM100.05 million comprising 339.03 million issued shares, while outstanding warrants stood at 47.13 million, exercisable into 47.13 million new shares at 35 sen each, expiring on Dec 22, 2024.

So far, Classita said Chan Swee Ying, who emerged as a substantial shareholder with a 26.55% stake less than two months ago, has provided a written undertaking to partially subscribe to her entitlement of 100 million rights share, worth RM10 million.

Classita said it aims to raise a minimum of RM30 million, hence it is still in the midst of finding other underwriters to underwrite another 200 million shares worth RM20 million.

Apart from Chan, other entitled shareholders collectively own 73.45% stake in the group, and in the case of zero subscription from the latter, their shareholdings will be diluted to 38.96% after the rights issue, and further to 30.4% assuming full exercise of the free warrants, said Classita.

In justifying the corporate exercise, Classita said it resorted to rights issues because management intends to preserve the group’s cash and bank balances, which stood at RM10.35 million at end-2022, for working capital requirement and to address any short-term obligations in a timely manner.

The proposed rights issue and free warrants, which are expected to be completed in the second quarter this year, requires shareholders’ approval through an extraordinary general meeting.
TA Securities has been appointed as the principal adviser for the corporate exercise.

Shares of Classita closed half sen or 1.6% lower at 30.5 sen, giving it a market capitalisation of RM103.4 million.