KUALA LUMPUR (Nov 15): Carbon-based products manufacturer PMB Technology Bhd (KL:PMBTECH), which is 23.58% controlled by Press Metal Aluminium Holdings Bhd (KL:PMETAL), announced on Friday that its rights issue of 243.7 million shares has been oversubscribed by 12.45%.

AmInvestment Bank, on behalf of PMB Technology, announced via a filing on Bursa Malaysia that the group had received valid acceptances and excess applications totalling 274.05 million rights shares. The new shares are expected to be listed and traded on the Main Market of Bursa Malaysia on Nov 22.

Last month, PMB Technology set the issue price of the rights shares at RM1.27, based on an entitlement basis of three rights shares for every 20 existing shares held as of Oct 23. The exercise aims to raise gross proceeds of about RM309.5 million.

When announcing the rights issue in July, the company said the majority of the proceeds would be used to repay borrowings. As of end June, the group’s total borrowings stood at RM983.44 million, while cash and bank balances amounted to RM70.17 million.

On Friday, PMB Technology’s shares closed unchanged at RM1.65, giving the company a market capitalisation of RM3.13 billion. Year-to-date, the stock has declined by over 42%.