KUALA LUMPUR: Pelikan International Corporation Bhd's renounceable rights issue of up to 169.6 million shares was oversubscribed by 9.17% or 15.55 million shares.

The company announced today that the total valid acceptance and excess applications received were for 185.18 million right shares.

"The balance of the application monies received from the unsuccessful or partially unsuccessful excess rights shares applications will be refunded and the excess rights shares will be allotted in the manner as stated in the abridged prospectus dated Jan 8, 2010, in relation to the rights issue," it said.

The exercise involved the issuance of up to 169.6 million new ordinary shares of RM1 each at an issue price of RM1.10 per share on the basis of one rights share for every two existing ordinary shares held as at Jan 6.

In a separate press release, Pelikan's president and CEO Loo Hooi Keat expressed satisfaction with the take-up rate "given the volatile market conditions".

He added that the subscription rate indicated investor confidence in the company's expansion plan.

Pelikan is a manufacturer and distributor of writing instruments, school stationery, art and hobby products, office supplies and printer consumables.

The rights issue will boost Pelikan's share capital from RM343 million to RM513 million, with proforma gearing improved to 0.16 times from 0.53 times as at Sept 30, 2009. The new shares will be listed on Friday.