Wasn't it mentioned in their initial announcement/proposal that it is a 1 for 1 rights issue? Whether the rights issue will be fully subscribed or not, is a whole different question.

Here's what I think. For a 1 for 1 rights issue, it means that after the completion of the rights issue exercise, the price of the share will be reduced by half. So, if the closing price before the ex-date is RM0.70, that will mean a price of RM0.35 after the ex-date. Am I wrong? If I am right, I don't see how one can say that the RI is cheap and reasonable, unless you are very certain that the price will only go up after the exercise. If, God forbid, the price falls, well, you can even pick up the share at a cheaper price than RM0.35.