MRCB extends loss in early trade on massive cash call

Surin Murugiah
Friday, 19 May 2017 13:24:09 PM

KUALA LUMPUR (May 19): Malaysian Resources Corp Bhd (MRCB) extended its loss in early trade today as its proposed rights issue did not go down well with shareholders.

At 9.29am, MRCB dipped 0.65% or 1 sen to RM1.53 with 4.27 million shares traded.

The Edge Financial Daily this morning reported that MRCB succumbed to heavy selling yesterday on concerns that some shareholders might be reluctant to pump fresh cash into the conglomerate. Shareholders who decline to subscribe may suffer from up to a 50% shareholding and earnings dilution.

The Daily said yesterday’s selldown sent the stock down as much as 12% to an intraday low of RM1.53, with 67.42 million shares changing hands — making it the third most active stock. Some RM436 million of market value were wiped off in one day. —