Kuala Lumpur, 27 July 2016 – Dagang NeXchange Berhad (“DNeX”) announced that its recent rights issue, which closed on 20 July 2016 has received strong support from its shareholders. The rights issue is oversubscribed by 23 per cent for the 465.1 million rights shares offered. DNeX will receive a gross proceed amounting to RM97.7 million.
In addition to the rights issue, DNeX had also announced a special issue involving the issuance of 130 million new shares at 22 sen each. All of the special issue shares will be fully subscribed, raising a gross proceed of RM28.6 million for the Group to fund future growth in the IT and Energy sectors.
The proceed of RM97.7 million will be mainly used to finance the Group’s acquisitions of OGPC Sdn Bhd and OGPC O&G Sdn Bhd, collectively known as OGPC Group. DNeX is acquiring OGPC Group for RM170.0 million, with RM83.0 million to be paid via cash and RM87.0 million via new DNeX shares.
Group Managing Director of DNeX, Encik Zainal Abidin Jalil said, “We are very pleased with the subscription rate of our rights issue as it demonstrates the confidence that the shareholders have in the Group and our business plan. Moving forward, we will strive hard to maximize the growth potential of our new Energy assets as a new revenue driver to supplement our e-commerce for Trade Facilitation and IT services so as to continually deliver and enhance value to our shareholders over the medium to long term.”
Post completion of the rights issue, special issue and issuance of new shares to fund the acquisition of OGPC Group, DNeX shareholder base would be enlarged to 1,732.9 million shares.