Kuala lumpur: Well Chip Group Bhd will undertake a renounceable rights issue of up to 120 million new shares in the company to fund the expansion of new pawnshops and for working capital. It will be on the basis of one rights share for every five existing shares held.

According to BERNAMA News Agency, the investment holding company stated that the proposed rights issue is expected to raise between RM60.8 million and RM120 million, based on an issue price of RM1.00 per rights share. The proceeds are intended for the expansion of new pawnshops within 24 months, while the remaining amount will be used as working capital within 12 months.

The company noted that the proposed rights issue would enable them to raise the necessary funds without incurring additional interest expenses, in contrast to bank borrowings. Well Chip Group Bhd aims to complete and implement the proposed rights issue by the fourth quarter of 2026, as mentioned in a stock exchange filing.

CGS International Securities Malaysia Sdn Bhd has been appointed as the principal adviser for the proposed rights issue.