Sports shoemaker KTP Holdings says it will raise about $73.6 million by issuing at least 170 million new shares via a one-for-one rights issue at 45 cents each. It has also proposed an amendment to its bylaws to change the par value of its shares, to increase its authorised share capital from $280 million to $360 million, to reduce the par value of existing shares from $1 a share to equivalent shares of 45 cents and to subdivide every five issued shares of $1 into 20 equivalent shares. The rights issue price represents a discount of 61.2 per cent to the closing price of $1.16 on Wednesday. It also represents a 44.1 per cent discount to the theoretical ex-rights price of existing shares at 80.5 cents based on the closing price. The stock was suspended from trading yesterday morning at its own request. It said it was in the best interests of the company and its shareholders to enlarge the capital base. The controlling shareholders are to take up their entitlements. Of the proceeds, it said $40 million would be used to repay bank borrowings, $10 million to set up a product development centre in Taiwan and the rest for working capital. The company suffered an interim loss of $21.53 million in the six months to September 30, dragged down by its two Indonesian subsidiaries.