REDtone’s ICULS, warrant conversion price fixed at 25 sen

Written by The Edge Financial Daily
Thursday, 21 January 2010 00:24

KUALA LUMPUR: REDTONE INTERNATIONAL BHD [] has fixed the conversion price of its irredeemable convertible unsecured loan stocks (ICULS) and warrants under a rights issue at 25 sen. It has proposed a renounceable rights issue of up to RM41.52 million 10-year 2.75% ICULS, with up to 166.09 million free detachable warrants on the basis of 10 ICULS of 10 sen each with four warants for every 10 shares of 10 sen each held.

In a statement yesterday, REDtone said the entitlement date for the rights issue was Feb 4. It is targeting a a March listing and quotation for its ICULS and warrants on Bursa.

REDtone hoped to raise up to RM41.52 million, utilising up to RM39.12 million for its broadband business infrastructure over a three-year period as it intensified the rollout of its services to meet growing demand, said its group managing director Wei Chuan Beng.

“We continue to receive positive feedback on our broadband offering and judging from the interest of customers towards our ability to offer customised solutions, we are optimistic of achieving a 50% to 100% growth in the number of broadband customers over the next one year,” he said.

Wei said customers from the business and government sector had doubled to 1,000 over the last 12 months, bringing REDtone customers to a total of 500,000. Meanwhile, REDtone’s Shanghai-based operations in collaboration with state-owned China TieTong Telecommunications Corporation Shanghai Branch Company saw growth of about 2% monthly for its discounted voice service, bringing its customer base to over one million.