KUALA LUMPUR (Aug 19): Malaysia Steel Works (KL) Bhd (Masteel) has revised its rights issue price downwards by 19.1 sen or 32.59% to 39.5 sen per rights share, from 58.6 sen.

Similarly, Masteel revised downwards the exercise price of the accompanying free warrants to 39.5 sen, from 58.6 sen, its filing showed.

Masteel said the decision took into account, among others, the decline in its share price since the right issue’s price-fixing date of May 6, 2021, when Masteel’s counter closed at 86.5 sen.

The revised issue price of the rights shares and the revised exercise price of the warrants represent a discount of 24.3% to the 5-day volume-weighted average market price (VWAMP) of Masteel shares up to and including Aug 18, 2021 of 52.15 sen.

It also represents a discount of 13.8% to the theoretical ex-all price of Masteel shares of 45.83 sen, based on the 5-day VWAMP calculation respectively, it said.

“Premised on the above, the board is of the view that the revised issue price of the rights shares and the revised exercise price of the warrants are fair,” it added.

Masteel had proposed the one-for-two rights issue of up to 226.37 million rights shares in December 2020, together with one free warrant for every rights share subscribed.

The latest pricing now implies Masteel would raise up to RM89.42 million from the rights issue, of which around 85% would be used for working capital whereas another RM10 million will be used for debt repayment.

Shares of Masteel closed down 1.5 sen or 2.8% to 52 sen apiece, valuing the steelmaker at RM235.42 million.