KUALA LUMPUR (April 2): Dolphin International Bhd has decided to cancel its proposed rights issue, saying it wants to explore alternative ways of raising funds.

In a filing with Bursa Malaysia, the group said its board resolved on Tuesday not to proceed with the plan, opting instead to seek more expedient avenues for funding its working capital.

Dolphin had in October last year proposed to issue up to 178.38 million shares, along with up to 133.79 free detachable warrants, at 7.5 sen per rights share to raise up to RM13.38 million.

The group had proposed to allocate up to RM5.13 million for working capital, RM7 million for the repayment of bank borrowings, and RM1.25 million for expenses related to the corporate exercise.

Originally a palm oil mill engineering services provider, Dolphin later expanded into the food and beverage business, which has become the group's largest revenue contributor.

According to the group's 2023 annual report, its largest shareholder is Asia Poly Holdings Bhd, holding a 10.53% stake, followed by Datuk Yeo Boon Leong with a 7.95% stake.

Dolphin's shares closed one sen or 4.65% higher at 22.5 sen on Tuesday, giving the group a market capitalisation of RM30.1 million. Year-to-date, the stock has risen by 36.36%.