KUALA LUMPUR (Sept 22): Symphony Life Bhd has proposed a renounceable rights issue of warrants for the basis of one warrant for every two existing shares, to raise up to RM35.8 million. 

The actual amount depends on the final issue price of the warrants, but the company plans to utilise this for its bank borrowing repayments amounting to RM34.97 million in a maximum scenario, according to its filing on Friday (Sept 22).

Symphony Life has 716.01 million issued shares excluding treasury shares, the filing said. 

The maximum scenario assumes all the treasury shares resold in the open market prior to the entitlement date and all entitled shareholders fully subscribing to the warrants.

Meanwhile, the minimum scenario sees it raising RM5 million, with group CEO Chin Jit Pyng as the undertaking shareholder to subscribe in full of his entitlement and additional warrants.

The group said the exercise aims to reduce the borrowing of the group as to strengthen its balance sheet, which will reduce interest expenses by approximately RM2.05 million per annum moving forward.

Moreover, the reduction in its gearing and raised surplus is expected to provide greater financial flexibility for the group.

As at end-June, Symphony Life had non-current borrowings of RM124.04 million and current borrowings of RM45.57 million. Cash balance stood at RM107.63 million. 

The warrants issue price will take into consideration the theoretical fair value based on the five-day volume weighted average market price of the group’s shares up to and including the last trading day prior to the price-fixing date.

The group has not undertaken any equity fund-raising exercise in the past 12 month, read its filing.

At market close, Symphony Life shares remained unchanged at 35.5 sen, with a market capitalisation of RM254.34 million.