KUALA LUMPUR: TM International Bhd’s issue of the rights shares had been fixed at RM1.12 per share, which is a discount of 50.9%, as the telco seeks to raise gross proceeds of about RM5.254 billion.

TMI said on March 24 the entitlement basis of five rights shares for every four existing TMI shares would be determined and announced later.

“Accordingly, the proposed rights issue will raise gross proceeds of approximately RM5.254 billion and involve the issuance of approximately 4,691.8 million rights shares,” it said in a statement issued via CIMB Investment Bank Bhd.

“The issue price of RM1.12 per rights Share represents a discount of 50.9% to the 5-day volume-weighted average market price (VMAMP) up to March 23 of RM2.28 and 31.7% to the theoretical ex-rights price of TMI shares of RM1.64 (based on the five-day VWAMP).

TMI shares were suspended for the announcement.

At the EGM on March 24, TMI shareholders approved the name change to Axiata while the new logo would be unveiled in April.

TMI officials said TMI would incur RM15 million to RM25 million to rebrand itself, which is RM5 million to RM10 million on top of the RM10 million to RM15 million that it would have cost TMI, if it were to continue building the existing brand.

The officials said TMI was not favoured due to the confusion with the TM or Telekom Malaysia branding.