KUALA LUMPUR (Jan 13): Harvest Miracle Capital Bhd (KL:HM), whose share price shot up 61% over the past three weeks, announced that its rights issue of 1.23 billion shares has been oversubscribed by 20.24%.

The company raised fresh capital of RM98.43 million from the cash call. Half of the amount raised will be invested in the money lending business while the remaining RM49.27 million will be used to pay off Aset Kayamas Sdn Bhd for the acquisition of the Genting Antara service apartment project in 2022.  

The three-for-one rights issue was priced at eight sen per share, compared with the closing price of 18.5 sen on Monday. The share price rally that started late last month widened the price gap.

At the close of acceptance, the ACE Market-listed company said it received valid acceptances and excess applications, totalling 1.48 billion rights shares, surpassing the total number of rights shares available for subscription

Last month, Harvest Miracle, formerly known as Vortes Consolidated Bhd, set the issue price of the rights shares at eight sen and warrant at 10 sen. The rights issue involved up to 1.36 billion shares on the basis of three rights shares for every one share held on Dec 19, 2024. The cash call came with free warrants on the basis of one warrant D for every two rights shares subscribed.

The rights shares with warrants D are expected to be listed on Jan 21, it said.

From the total RM98.43 million proceeds, Harvest Miracle said that RM49.27 million will be used to pay the remaining balance payment for the Antara Genting project — a serviced apartment development. This is a project that the company took over from Aset Kayamas Sdn Bhd in April 2022.

“As of Nov 29, 2024, the Antara Genting project has reached 80% completion. The group has also paid RM197.08 million (80%) of the total consideration of RM246.35 million,” it noted.

Meanwhile, it allocates RM45.89 million for the group’s money lending business as the company plans to offer financing solutions to a broader range of customers, including personal financing, working capital, business start-ups, real estate purchases, project financing and equipment financing.

Additionally, the group is venturing into the supply chain business through the incorporation of its subsidiary, Miracle Nexus Supply Sdn Bhd, which aims to provide end-to-end supply chain solutions, including sourcing, procurement, warehousing and last-mile fulfillment for building materials.

“These supply chain services will be seamlessly integrated with the group’s moneylending arm, which will offer flexible financing options with extended financing periods,” it said.

Shares of Harvest Miracle closed down 1.5 sen or 7.5% at 18.5 sen on Monday, giving the group a market capitalisation of RM303.5 million.