Pelikan cash call 9pc oversubscribed

 

Pelikan International Corporation Bhd has received an encouraging response to its proposed right issue exercise despite current volatile market conditions.

The company is proposing a one-for-two rights of 169.6 million new shares at RM1.10 each which would be listed and quoted on the main market of Bursa Malaysia Securities Bhd on February 12, 2010.

The group received applications for 185.2 million shares, valued at RM203.7 million, representing an over subscription rate of 9.2 per cent over the 169.6 million rights shares available for allotment.

"This favourable subscription indicates investors confidence in our expansion plan and our global presence in the stationary market," Pelikan President and Chief Executive Officer Loo Hooi Keat was quoted as saying in a statement today.

Saying that Pelikan was focused on growing the group's business, internationally, he added the corporate exercise would not only increase the company''s share capital base but enhance the balance sheet.

With the fully subscribed rights issue, the group's share capital, as September 30, 2009 improved to RM513 million from RM343 million earlier. - BERNAMA