KUALA LUMPUR (Nov 25): Mpire Global Bhd (KL:MPIRE) announced plans to raise capital through a proposed rights issue.

In a bourse filing on Monday, the company aims to issue up to 993.51 million rights shares at an issue price of 10 sen each on the basis of five rights shares for every one Mpire shares, together with up to 397.41 million free detachable warrants (warrants C) to its shareholders, with the goal of raising at least RM13 million, on the basis of two warrants for every five rights shares subscribed.

At an issue price of 10 sen each, the rights shares are priced at a discount of about 7.52% from the current market price of Mpire’s shares. The warrants can be exercised at 15 sen each.

Mpire aims to raise RM13 million in gross proceeds through these exercises.

Mayapada Capital Sdn Bhd, a major shareholder of the company, has given an irrevocable written undertaking that it will subscribe for 55 million rights shares worth RM5.5 million.

If all shareholders fully subscribe, Mpire could issue up to 993.51 million rights shares and 397.41 million warrants C. This scenario assumes that all outstanding warrants B are exercised prior to the entitlement date.

Additionally, the company plans to appoint underwriters to cover any unsold rights shares, securing the success of the offering.

The underwriting agreement will be finalised after receiving the necessary shareholder approvals, and the details will be disclosed in the upcoming prospectus.

The funds raised from the rights issue will be used to support Mpire’s business expansion, strengthen its working capital, and fund potential investments.