KUALA LUMPUR (April 12): Based on corporate announcements and news flow today, companies in focus on Friday (April 13) may include: Dolphin International Bhd, MMS…
PETALING JAYA: Canned food and drink manufacturer Rex Industry Bhd has called off its plans for a two-for-nine rights issue together with a three-for-four bonus issue after taking into consideration the current market condition.
The rights issue was to raise RM20.83 million for future viable investments, repayment of loans and working capital.
“Given the current weak equity market condition, the company intends to explore alternative funding options to meet its funding requirements,” it said in a filing with the stock exchange.
For instance, Rex said it may consider utilising its internally generated funds and/ or external borrowings to fund its working capital or embark on its viable business/ investment plans in a few phases, so that it can spread out its investment outlay on a staggered basis over a period of time.
Its net cash generated from operating activities was at about RM3.89 million as at June 30, 2017, with cash and cash equivalent and bank borrowings standing at about RM16.70 million and RM21.89 million, respectively.
Based on Rex’s net assets of about RM142.47 million, its gross gearing ratio is recorded at 0.15 times while net gearing ratio at 0.04 times.
PETALING JAYA: Central Industrial Corp Bhd (CICB) proposes to undertake a bonus issue of 40 million bonus shares on the basis of four bonus share for every five existing shares held to reward its existing shareholders.
In a filing with Bursa Malaysia, CICB said the proposed bonus issue aims to reward its shareholders for their loyalty and continuing support, by enabling them to have greater participation in the equity of the company in terms of the increased number of shares held while maintaining their percentage of equity interest.
“In addition, the proposed bonus issue will increase the number of CICB shares in issue, which may potentially improve the liquidity and marketability of CICB shares,” it said.
Upon completion of the proposed bonus issue, CICB's share capital will remain at RM50 million while the number of issued shares in CICB will increase to 90 million.
It is expected to be completed by the third quarter of 2018.
PETALING JAYA: Kumpulan Perangsang Selangor Bhd (KPS) has proposed to undertake a bonus issue of up to 38.38 million new KPS shares on the basis of one bonus share for every 13 existing shares held.
The group told the stock exchange that the proposed bonus issue will be effected by capitalising a total of up to RM38.38 million from its share premium account.
KPS said it is intended to reward the the shareholders for their loyalty and continued support to the group.
“After due consideration of the various options available, the board is of the view that the proposed bonus issue is an appropriate avenue for the company to reward its shareholders as the exercise will increase the number of KPS shares held by the existing shareholders in terms of the number of KPS shares, whilst maintaining their percentage of equity interest; and is expected to enhance the marketability and trading liquidity of KPS shares by way of a larger capital base,” KPS said.
The bonus issue exercise is expected to be completed by the second quarter of 2018.
KPS shares gained 1 sen or 0.8% to close at RM1.26 on some 2,500 shares done.
PETALING JAYA: Berjaya Assets Bhd (BAssets) proposes to undertake a bonus issue of warrants on the basis of one warrant for every two shares held.
The group told Bursa Malaysia the bonus issue entails the issuance of up to 1.28 billion warrants.
The exercise price of the warrants has been fixed at 35 sen per warrant, which represents a discount of about 12.5% to the theoretical ex-bonus price of BAssets shares of about 40 sen, based on its five-day volume weighted average market price of 42 sen.
Assuming all the 1.28 billion warrants are exercised at the exercise price, the group is expected to raise gross proceeds of about RM447.7 million from the proposed bonus issue, which will be used for its working capital.
BAssets said the proposed bonus issue aims to reward and provide the entitled shareholders with an option to further increase their equity participation in the company at a pre-determined exercise price during the tenure of the warrants and to benefit from the future growth of the group as well as any potential capital appreciation in its shares.
“The proposed bonus issue will also strengthen the capital base of the company and potentially provide additional funds to the BAssets group as and when the warrants are exercised.”
Barring any unforeseen circumstances, the proposed bonus issue is expected to be completed by the second quarter of 2018.
PETALING JAYA: Farlim Group (Malaysia) Bhd has proposed a bonus issue of 28.07 million bonus shares on the basis of one bonus share for every five existing Farlim shares.
The proposed bonus issue is to reward the existing shareholders of the company for their continued support to Farlim and its subsidiaries.
In addition, it said the exercise will allow the company to utilise the amount standing to the credit of its share premium account as provided for under Section 618(3) of the Act, following the implementation of the no par value regime.
Farlim noted that there will be a corresponding dilution in the earnings per share of the Farlim group for the financial year ending Dec 31 as a result of the increase in the number of Farlim shares in issue arising from the exercise.
The exercise is expected to be completed by the third quarter of 2018.
PETALING JAYA: New Hoong Fatt Bhd has proposed to undertake a bonus issue of one share for every existing 10 shares held in a bid to reward its shareholders.
The exercise will entail the issuance of some 7.53 million new shares and it will capitalising RM4.21 million from its share premium account and RM3.31 million from the retained earnings account.
The group said the proposed bonus issue will enlarge the group's capital base, which will potentially enhance the marketability and trading liquidity of its shares.
New Hoong Fatt's shares were unchanged at RM3.25 with 18,000 shares done.