HSS shares fall on private placement, rights issue exercise

PETALING JAYA: HSS Engineers Bhd’s share price fell 0.85% this morning after it proposed to undertake a private placement and rights issue to raise up to RM84.29 million to fund its foray into the water industry.
As at 11.07am, HSS stood at RM1.16 with 196,200 shares changing hands.
HSS had entered into a conditional shares sale agreement to acquire the entire stake in SMHB Engineering Sdn Bhd for RM270 million, which will be satisfied via RM162 million cash and and the issuance of 94.74 million new shares at an issue price of RM1.14 per share.
It will issue up to 31.91 million new rights shares on the basis of one rights share for every 10 shares held.
The rights issue exercise will be accompanied by a bonus issue of up to 15.95 million new shares on the basis of one bonus share for every two rights shares subscribed as well as up to 47.86 million free warrants on the basis of three warrants for every two rights shares subscribed.