TMI's Rights Issue details announced

TMI has announced its details of its Rights Issue this morning. It has been structured as a 5-for-4 Rights Issue at RM1.12 per share. Based on this, TMI's Rights Issue share has been priced at a discount of 37.2% to the Theoretical Ex-rights price of RM1.78 (assuming the closing price on the last date of the entitlement is the same as TMI's yesterday's closing price) or 57.1% to TMI's yesterday's closing price.



Prior to the above announcement, TMI's share price has rallied strong from a low of about RM2.15. The share price is likely to correct downward. For those who like to buy & go through with the capital raising exercise, the good entry level is about RM2.30-40.


Chart 1: TMI's 60 min chart as at Mar 24, 2009(source: Quickcharts)

Maybank has also enjoyed a sharp rally in the past 4 days. Again, for those who like to buy & go through with the capital raising exercise, the good entry level is about RM4.30-40.


Chart 2: Maybank's 60 min chart as at Mar 24, 2009 (source: Quickcharts)