So Many Cash Calls In OuR Market!

Ever wonder how many cash calls are being proposed in our local stock market?

Ever wonder if our market is really rich enough to absorb all these cash calls?

Let me highlight 'some' news clips (yeah, I know I will be missing 'some' names and if you think I have left them out, do let me know... please. :D ) and as usual they are all in random order.

The godzilla!

• Saturday January 9, 2010
  
  MISC proposes RM5.2b rights issue
  
  PETALING JAYA: MISC Bhd has proposed a renounceable rights issue of 743.96 million new shares on the basis of one rights share for every five existing shares, at an issue price of RM7 per rights share.
  
  The exercise was expected to raise about RM5.2bil, it said in a stock exchange filing.
  
  The ex-date and entitlement dates are on Jan 20 and Jan 22 respectively...

• UEM Land proposes rights issue to raise RM970m
  Written by Joseph Chin
  Monday, 11 January 2010 19:48
  
  KUALA LUMPUR: UEM LAND HOLDINGS BHD [] has proposed to undertake a rights issue to raise up to RM970 million of which the bulk would be used to repay the UEM Group term loan of RM633 million and RM266.2 million for property development.
  
  UEM Land said on Monday, Jan 11 the rights issue, while enabling it to repay the loan, would enable it to achieve a more robust capital structure.

• Pelikan to raise RM188m
  
  Published: 2009/10/22
  
  PELIKAN International Corp Bhd, a stationery maker, plans to raise up to RM188.7 million from a rights issue to fund working capital.
  
  It proposed to offer 171.58 million new shares to investors at RM1.10 apiece on the basis of one rights share for every two existing shares, it told Bursa Malaysia.

• Gamuda makes cash call; 1Q net profit up 14.5%
  Written by Chong Jin Hun
  Tuesday, 22 December 2009 23:24
  
  KUALA LUMPUR: GAMUDA BHD [] is seeking fresh capital from its shareholders via a renounceable rights issue of up to 267.7 million warrants.
  
  The exercise, on the basis of one warrant for every eight existing shares held, may raise up to RM714.8 million for the infrastructure builder and property developer.

• Kencana plans to raise RM185m from rights issue
  
  Published: 2009/11/12
  
  OIL and gas company Kencana Petroleum Bhd (5122) plans to raise up to RM185 million through a rights issue.
  
  The group plans to use the money for capital expenditure, investment opportunities, business expansion and repayment of bank borrowings and defray expenses for the rights issue. The rights issue is expected to cost about RM4.5 million.

• IOI Corp to raise RM1.22b via rights issue
  Written by Nadia S Hassan
  Friday, 24 July 2009 09:44
  
  KUALA LUMPUR: IOI Corporation Bhd is looking to raise some RM1.22 billion via a renounceable rights issue of up to 420.99 million new shares to fund future capital expenditure and investment opportunities.

• mTouche plans rights issue
  
  Published: 2009/12/05
  
  MTOUCHE Technology Bhd will undertake a renounceable 1-for-1 rights issue estimated to raise some RM18.2 million which it wants to use as working capital.

• Rights issue seen diluting MAS' earnings
  
  By Jeeva Arulampalam Published: 2009/12/24
  
  Malaysia Airlines' (MAS) (3786) plan to raise some RM2.67 billion from a rights issue will dilute earnings by as much as 29 per cent in the future, say analysts.
  
  Maybank Investment Bank Bhd (Maybank IB) said the rights offer will dilute MAS' earnings by 29 per cent in 2011 and has cut its call from "buy" to "hold"...

• REDtone International proposes rights issue of ICULS
  Written by The Edge Financial Daily
  Monday, 12 October 2009 21:38
  
  KUALA LUMPUR: REDTONE INTERNATIONAL BHD [] has proposed rights issue of irredeemable convertible unsecured loan stocks (ICULS) to raise RM41.5 million for capital expenditure.

Updated 15/1/2010

• MK Land plans RM150m rights issue
  
  Published: 2010/01/15
  
  PROPERTY developer MK Land Holdings Bhd plans to raise some RM150 million from a rights issue of equity-linked instruments.
  
  Hong Leong Investment Bank Bhd told Bursa Malaysia that the proceeds will be used to partly repay bank borrowings and for working capital.
  
  A detailed announcement is expected to be made once the terms of the rights issue have been finalised.

Updated 19/1/2010. Left out MRCB! :P

• MRCB's rights issue to go ex on Jan 28
  Written by Joseph Chin
  Monday, 18 January 2010 19:54
  
  KUALA LUMPUR: MALAYSIAN RESOURCES CORP [] Bhd's renounceable rights issue of up to 482.27 million new shares will go ex on Jan 28.
  
  Its submitting merchant bank, Maybank Investment Bank Bhd, said on Jan 18 the entitlement date for the rights shares is Feb 2.
  
  The corporate exercise involved the rights issue on the basis of one rights share for every two shares held on Feb 2 at 5pm at an issue price of Rm1.12 per rights share.
  
  The rights issue is to raise gross proceeds of up to RM566 million

Updated 21/1/2010

• Mudajaya plans up to RM184m share sale
  Written by Reuters
  Wednesday, 20 January 2010 23:36
  
  KUALA LUMPUR: CONSTRUCTION [] firm MUDAJAYA GROUP BHD [] plans to raise up to RM184 million in a share sale, according to a term sheet obtained by Reuters today.
  
  Mudajaya plans to sell 37.2 million new shares at between RM4.75 and RM4.95 a share, the term sheet showed. CIMB Investment Bank is the bookrunner. Mudajaya ended today down six sen at RM4.90. The stock rose over 300% in 2009. — Reuters

• KYM plans to raise RM6m from share sale
  
  Published: 2010/01/21
  
  KYM Holdings Bhd, a paper bag manufacturer and property developer, plans to raise RM6.1 million from a share sale to fund working capital.
  
  It plans to place out 8.11 million new shares, or about a tenth of the company, priced at 75 sen apiece in a private placement.
  
  It also plans to issue new stock options to staff and directors.
  
  Stocks under the employee share option scheme (Esos) will account for 15 per cent of KYM’s existing shares, it told Bursa Malaysia.
  
  Shareholders have approved the placement in KYM’s previous annual general meeting but they will have to vote on the Esos at another meeting.

Updated 22/1/2010

• Focus Dynamics to raise RM2m
  Written by The Edge Financial Daily
  Friday, 22 January 2010 00:41
  
  KUALA LUMPUR: FOCUS DYNAMICS TECHNOLOGIES [] Bhd will raise RM2.01 million from the second tranche of its private placement exercise which accounts for 13.5% of its share base.
  

Updated: 15/1/2010.

On the Edge Financial Daily, the news paper talks about the other fund raising by selling of placement shares: More companies propose fund raising

• More companies propose fund raising
  Written by Financial Daily
  Friday, 15 January 2010 12:15
  
  KUALA LUMPUR: With improving market and economic sentiment as well as share prices advancing since the start of the year, more companies are taking the opportunity to raise funds via placements or cash calls from shareholders.
  
  Yesterday, three companies — AE Multi Holdings Bhd (AEM), Cocoaland Holdings Bhd and KSL Holdings Bhd — proposed to raise funds for additional working capital and strengthen their balance sheets via private placement of up to 10% of their existing paid-up capital, while MK Land Holdings Bhd is undertaking a rights issue.
  
  In a statement yesterday, MK Land Holdings Bhd announced that its board had decided to undertake a rights issue of equity-linked instruments to raise gross proceeds of at least RM150 million for partial repayment of bank borrowings and for working capital.
  
  It said a detailed announcement would be made at a later date after the terms of the rights issue had been finalised. MK Land rose 0.5 sen to 43 sen yesterday, with over six million shares done. Its 52-week high of 47.5 sen was posted on June 15, 2009.
  
  KSL Holdings Bhd is proposing a placement of up to 35.54 million new shares of 50 sen each to yet-to-be identified investors by RHB Investment Bank as the placement agent.
  
  The discount too will be not more than 10% of the volume weighted average market (VWAM) price or lower than its par value. It said the indicative issue price would be RM1.09 based on a discount of about 10% to the five-day VWAM price up to Jan 11, 2010 of RM1.21. On the indicative price, it would raise about RM38.74 million.
  
  KSL expects to complete the exercise by the first quarter of the year. Although its share price has risen over the past few trading days, it is still off its 52-week high of RM1.37 on Oct 27, 2009. It closed one sen higher at RM1.25 yesterday, with 130,300 shares done.
  
  AEM said its proposed placement of up to 8.45 million shares of 50 sen each would be priced at 50.5 sen, representing a discount of about 9.8% to the five-day VWAM price from Jan 7 to 13, 2010 of about 56 sen.
  
  The exercise, which could be completed by the first quarter, will raise up to 4.27 million. MIMB Investment Bank Bhd is the adviser and placement agent. AEM said net gearing was expected to decline to 1.08 times from 1.24 times, assuming the entire proposed issue of new shares was placed out.
  
  AEM also rose to its 52-week high at the close to RM1.06, up 30 sen, with more than 24 million shares traded.
  
  Cocoaland’s proposed placement of 12 million shares of 50 sen each to yet-to-be-identified third-party investors has yet to be priced, but it would not be at more than 10% discount to the five-day VWAM price and not lower than its share par value.
  
  Assuming a discount of 10% to the VWAM price from Jan 7 to 13, 2004 of RM1.404, the issue price would be RM1.264 per share, raising gross proceeds of about RM15.2 million. Its gearing will be maintained at 0.01 times after the exercise, which is expected to be completed within the second quarter.
  
  TA Securities Holdings Bhd is the adviser and placement agent.
  
  The stock rose to its 52-week intra-day high of RM1.52 yesterday. It gained seven sen to close at RM1.51, with over two million shares done.
  
  
  This article appeared in The Edge Financial Daily, January 15, 2010.

Should I add in JCY mega IPO blockbuster in this? After all JCY is also raising money from the stock market.

• JCY hopes to raise US$350m from listing on Bursa
  
  Published: 2010/01/22
  
  Singapore: Malaysia's disk-drive component maker JCY International plans to raise US$350 million (RM1.1 8 billion) in an initial public offering, sources said, in the country's second biggest listing in six years.
  
  The share sale comes after Malaysia's top mobile phone operator Maxis Bhd's US$3.3 billion (RM11.12 billion) initial public offering in November last year was ranked as Southeast Asia's largest ever.