Investors Should Participate In OCR Group Rights Issue, Rewards Shareholders With 60 Pct Margin - Academician

KUALA LUMPUR, Sept 8 (Bernama) — Investors with shareholdings in property developer OCR Group Bhd should contemplate participating in the company’s renounceable rights issue exercise as it involves up to 1.34 billion free detachable warrants, said a business academician. 

Universiti Teknologi MARA (UiTM)’s Business and Management Faculty senior financial lecturer Wan Mohd Farid Wan Zakaria said entitled shareholders have the right to take up the offer on the basis of two rights shares with two warrants for every three existing OCR Group shares held as at Sept 5.

“It’s all about simple arithmetic whereby the rights issue offer price of 3.5 sen entails a 30 per cent discount from OCR Group’s current share price of five sen. 

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“There will be two free warrants that come with every two rights share. One can conservatively expect the warrant price to be listed at 1.5 sen,” he said in a statement today. 

The investor could reap a 30 per cent, or 1.5 sen off from one rights issue share discount, in addition to a further 1.5 sen from the free warrant – all for a total 60 per cent discount, or three sen.

The latest date and time to accept and pay for the provisional allotments and the excess rights shares with warrants E is 5 pm on Sept 23 (Monday).

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OCR Group’s rights shares, which are currently traded on Bursa Malaysia, could be purchased before Sept 13.

OCR Group’s indirect subsidiary OCR Templer Sdn Bhd entered into a joint venture on April 24 2024 to develop landed housing on 7.44 hectares (18.37 acres) in Templer, Rawang, with an estimated gross development value (GDV) of RM313 million.

At Friday’s close, the counter was traded half-a-sen lower at five sen, with 10.92 million shares changing hands. 

— BERNAMA

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