KUALA LUMPUR: Muhibbah Engineering (M) Bhd rose in early trade on news that it was planning to raise up to RM128.46mil through a rights issue.

       At 10am, the counter was up three sen or 4.84% to 65 sen a share on the back of 4.51 million units traded.

       In a filing with Bursa Malaysia yesterday, the oil and gas company said it has proposed to undertake a renounceable rights issue of up to 256.91 million rights shares on the basis of one rights share for every two existing shares.

       The proceeds has been earmarked for partial repayment of the revolving credit facilities and working capital.

       Muhibbah has targeted to complete the proposed rights issue by the second quarter of this year.

       It is not expected to have any material effect on the consolidated earnings of the group.