IOI Properties rights issue weighs on shares

 IOI Properties rights issue weighs on shares
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KUALA LUMPUR (Nov 21): IOI Properties Group Bhd fell as much as 15 sen or 6% after the company proposed a rights issue of up to 1.11  billion new shares at RM1.38 each to repay borrowings.

New share issuance leads to earnings per share dilution expectation
due to an expanded issued base.

In a statement to Bursa Malaysia last Friday, IOI Properties said it intended to undertake the rights issue on the basis of one rights unit for every four existing shares held.

Today, IOI Properties shares dropped to their lowest so far at RM2.28. At 3:37pm, the counter was traded at RM2.41 with some 10 million shares transacted.

At RM2.41, the company has a market capitalisation of RM10.63 billion.