JAKS Resources rights issues with warrants oversubscribed 28.71%.

PETALING JAYA: JAKS Resources Bhd’s rights issues with warrants exercise has been oversubscribed by 28.71%.

The corporate exercise entails the issuance of up to 1.3 billion rights shares together with up to 646.04 million warrants on a renounceable basis of eight rights shares together with four warrants for every five existing JAKS shares.

The group will raise about RM237.6 million, exceeding the minimum subscription level to be raised of RM200 million.

The valid acceptances and valid excess applications totalled 1.4 billion rights shares, compared with the 1.08 billion made available for subscription. Of the total oversubscribed rights shares, 1.05 billion or 96.99% are valid acceptances while the remaining 342.64 million or 31.72% are valid excess applications.

JAKS CEO Andy Ang Lam Poah said the overwhelming response was an encouraging vote of confidence in JAKS’ business fundamentals and future perspectives, despite the current economic landscape.

“Given the bright outlook in the renewable energy industry, we will continue to focus on power and energy sector in Malaysia. We are actively exploring viable opportunities to acquire renewable energy power plants, which can enhance our earnings visibility,” he said.

The bulk of the proceeds raised will be used for the subscription of an additional 30 million JAKS Pacific Power Ltd shares for US$30 million, which translates to about RM128.4 million.

“The balance of the proceeds will be utilised for future business projects and/or investments, partial repayment of borrowings, initial expenses arising from new ventures in Vietnam and for working capital requirements,” Ang said.