KUALA LUMPUR (Nov 5): Ann Joo Resources Bhd (KL:ANNJOO) said its rights issue of 140.35 million shares with free detachable warrants has been oversubscribed by 31.4%.

Valid acceptance and excess applications for 184.39 million rights shares were received, the steel company said in a bourse filing on Tuesday, noting that this represented an oversubscription of 44.05 million shares or 31.4% over the total number of shares available.

Under the rights issue, one new share is offered for every four shares held, with each rights share coming with one free warrant.

The rights shares and warrants are scheduled to be listed on the Main Market of Bursa Malaysia on Nov 11.

Ann Joo previously said that out of the gross proceeds of RM126.13 million from the exercise, 59.5% or RM75.03 million will be designated for working capital, while 39.6% or RM50 million will be used to fund business expansions and project expenditure.

The expansions include both the upstream and downstream sectors of the company's steel business and expansion in the green technology division as well as investments in environmental, social and governance initiatives and decarbonisation efforts.

Ann Joo’s shares closed up 2.5 sen or 2.8% to 93 sen on Tuesday, giving it a market capitalisation of RM672.6 million. Year-to-date, the stock has fallen 13.8%.