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Case study corporate dua hb.docx - Case study CWG Holdings...

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Case study: CWG Holdings Rights Issue (due 2 Oct 2017, 1 week) Work in pairs & answer the following questions based on CWG Holding Bhd’s prospectus filed on 14 September 2017. 1. What are the new proceeds raised from this rights issue exercise? (1 mark) Answer: The new proceeds raised from this rights issue exercise is corporate exercised which is the company announced to intends to undertake the proposal of the internal reorganization and the right issue. 2. Mentioned in the prospectus (page 8) that the four reasons to conduct the rights issue exercise are: (i) repay bank borrowings, (ii) reduce leverage level, (iii) provides opportunity to existing shareholders to buy new shares & (iv) to enhance the liquidity CWG shares. For each of these reasons, explain why they matter/important. (4 marks) Answer: (i) repay bank borrowings- Answer: 3. How many rights needed to buy a share of stock? (1 mark) Answer: 0.5 rights needed to buy a share of stock.
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