EG Industries’ rights issue oversubscribed

EG Industries Bhd’s renounceable rights issue of redeemable convertible preference shares (RCPS) has been oversubscribed by 26.1 times.

The rights issue comprised the issuance of 52.9 million RCPS of 95 sen each, but EG Industries received total valid acceptances and excess rights for 66.7 million RCPS worth RM63.4 million, the company noted in an exchange filing yesterday.

The corporate exercise raised RM50.2 million in proceeds for EG Industries, mainly to fund acquisitions of equipment and machinery, raw materials, and potential new businesses or assets.

“The proceeds will facilitate our continued growth by acquiring more machinery for the second factory in Sungai Petani, enhancing our research and development capabilities, and granting us more working capital,” its CEO Alex Kang noted in a release.