bonus issue

 
 

Mi Technovation plans 1-for-2 bonus issue

PETALING JAYA: Mi Technovation Bhd proposed a bonus issue of up to 250 million shares.

This will be undertaken on the basis of one bonus share for every two existing shares held, according to the group’s filing with Bursa Malaysia.

Mi Technovation said the bonus issue will enable the existing shareholders to have greater participation in the equity of the group in terms of the number of shares held while maintaining their percentage of equity interest.

The group also proposed an employees’ share grant scheme (SGS) of up to 10% of its total number of issued shares.

It said the SGS serves as a long-term incentive plan to reward eligible employees and to align their interest with the group’s corporate goals and objectives.


Guan Chong proposes 1-for-1 bonus issue, 1-for-3 free warrants

PETALING JAYA: Guan Chong Bhd is proposing a bonus issue of up to 527.94 million shares on the basis of one bonus share for every one existing share.

It also plans to issue up to 175.98 million free warrants on the basis of one warrant for every three existing shares to raise a minimum of RM262.79 million.

It said the proposed bonus issue of shares provides the shareholders of the company with greater participation in the equity of the company in terms of number of shares held and maintaining their percentage equity interest.

“In addition, the exercise is to reward the shareholders for their continuous support by enabling them to participate in the equity of the company without incurring any cost and will possibly be able to encourage trading liquidity of Guan Chong’s shares on Bursa Securities.”

For the free warrants issue, assuming the full exercise of the warrants at the exercise price of RM1.65 per warrant, Guan Chong is expected to raise up to RM290.37 million.

“The proceeds to be raised by the company, as and when the warrants are exercised, are expected to strengthen the company’s capital base and shareholders’ funds as well as potentially provide funds for the group to finance its working capital without incurring interest cost, as compared to bank borrowings.”

The proposals are not expected to have any material effect on the earnings of the group for the financial year ending Dec 31, 2019, save for the dilution in the earnings per share as a result of the increase in the number of shares in issue, and as and when the warrants are exercised into new shares.

The proposals are expected to be completed in the fourth quarter of 2019.


Acme proposes bonus issue, private placement

PETALING JAYA: Acme Holdings Bhd proposes a slew of corporate exercises including a bonus issue of free warrants, private placement and the acquisition of two companies for RM22 million.

The plastic parts manufacturer and property developer told Bursa Malaysia that it is acquiring the entire stake in Medan Tropika Sdn Bhd and Focal Products Sdn Bhd for RM20 million and RM2 million, respectively.

Medan Tropika is the registered owner of two parcels of freehold development land in Penang, with an aggregate market value of RM36.6 million.

On the bonus issue, it entails the issuance of up to 59.68 million free warrants on the basis of one warrant for every four existing shares held.

The exercise price for the warrants is 25 sen. If the warrants are fully exercised, Acme could potentially raise up to RM14.92 million which will be used as working capital.

Meanwhile, the private placement entails the issuance of up to 89.53 million shares, representing up to 30% of the enlarged number of its issued shares.

Based on an indicative price of 24.26 sen per share, the group expects to raise between RM16.74 million and RM21.72, will be used for the acquisition of Medan Tropika.


Focus Point plans 1-for-3 bonus issue

PETALING JAYA: Focus Point Holdings Bhd proposes a bonus issue of up to 55 million shares on the basis of one bonus share for every three existing shares held.

The group told Bursa Malaysia that the exercise will provide shareholders with greater participation in the equity of the company in terms of number of shares held and maintaining percentage equity interests.

The proposal is also expected to enhance the marketability and trading liquidity of the group on Bursa by increasing the number of shares.

The bonus issue is expected to be completed by the fourth quarter of the year.


Ewein to raise up to RM60.32m via bonus issue of warrants

PETALING JAYA: Ewein Bhd has proposed to undertake a bonus issue of up to 75.4 million free warrants in Ewein on the basis of one warrant for every four existing ordinary shares in Ewein.

In a filing with Bursa Malaysia, the company said the proposed bonus issue of warrants could raise gross proceeds of up to RM60.32 million, based on the indicative exercise price of 80 sen per warrant.

“Such proceeds if raised, shall be utilised for the future working capital requirements of Ewein group, which include, among others, payment for trade and other payables, staff costs such as salaries, statutory contributions and employee benefits (including medical) and other operating expenses such as utilities,” it said.

The indicative exercise price of 80 sen per warrant represents a premium of 22 sen or 37.93% to the five-day volume weighted average market price of Ewein shares up to and including the latest practicable date for the announcement of 58 sen per share.

Based on the maximum scenario and assuming full exercise of the warrants at the indicative exercise price of 80 sen per warrant, a total of up to 75.4 million new shares would be issued.

The company said that the exercise price of the warrants will be determined at a later date. The tenure of the warrants will be three years, commencing from and inclusive of the warrant issue date.

In addition, Ewein has proposed to establish an executives’ share option scheme (ESOS) of up to 10% of the total number of issued shares for eligible executive directors and senior management of the group.

It has also proposed to establish a dividend reinvestment plan (DRP) that provides shareholders with an option to elect to reinvest in whole or in part, their cash dividend(s) declared by Ewein in new shares.

Ewein said that the proposed bonus issue of warrants is an appropriate avenue for rewarding its existing shareholders while the proposed ESOS is targeted at the executive directors whose experience and network are instrumental to the continuous growth and success of the business.

The proposed ESOS is also targeted at senior management of the group in view of their contribution to the growth and performance of the group, as well as to align their interest with the corporate goals and objectives of the group.

As for the proposed DRP, Ewein said it is part of the group’s capital management plans and is intended to strengthen Ewein’s capital position as any cash so retained within Ewein, that would otherwise be made payable by way of dividend(s), will be preserved to fund the group’s future working capital requirements.


Pentamaster shares rise as much as 16 sen on bonus issue plan

PETALING JAYA: Pentamaster Corp Bhd was one of the top gainers on the bourse this morning, with its share price rising as much as 4.43% or 16 sen after announcing plans for a one-for-two bonus issue of up to 158.29 million shares.

The stock opened higher at RM3.67 this morning from its closing price of RM3.61 yesterday and traded at a high of RM3.77 during early trade. At 11.50am, the stock was 2.49% or 9 sen higher at RM3.70 with 1.27 million shares done.

Yesterday, the group told Bursa Malaysia that the bonus shares will be issued as fully paid shares at no consideration and without any capitalisation from its reserves.

The exercise aims to reward the shareholders of the company for their loyalty and continuous support by enabling them to have greater participation in the equity of the company in terms of the number of shares held, while maintaining their percentage of equity interest in the company.


LBI Capital to undertake bonus issue with warrants

PETALING JAYA: LBI Capital Bhd is planning to undertake a bonus issue of up to 16.43 million new shares together with up to 49.3 million free detachable warrants on the basis of one bonus share together with three warrants for every five existing ordinary shares in LBI.

Based on the maximum scenario and assuming full exercise of the warrants at 50 sen per warrant, a total of up to 49.30 new LBI shares would be issued and the company could potentially raise gross proceeds of up to RM24.65 million, according to its filing with the stock exchange.

The proceeds raised will be used for the future working capital requirements of the group, including payment of trade and other payables, staff costs and other operating expenses.

The proposed bonus issue of shares with warrants is to reward existing shareholders for their continued support while enhancing its capital base.

“It will enable the existing shareholders to have greater participation in the equity of the company in terms of the number of LBI shares held, whilst maintaining their percentage of equity interest,” it said.

The group has also terminated its existing employees’ share option scheme, which will be replaced by the establishment of a long-term incentive plan (LTIP) of up to 15% of the total number of issued shares of the company for eligible directors and employees of the group.

The proposed LTIP is to attract, retain, motivate and reward directors and employees of the group that contribute to the performance and growth of the group. It shall comprise the proposed share grant plan and proposed share option plan.

Upon implementation, the proposed LTIP shall be in force for five years. The board may extend the scheme for another five years if it deems fit and upon recommendation of the LTIP committee.


Kayin raises offer price for SPB again

PETALING JAYA: Selangor Properties Bhd’s (SPB) largest shareholder Kayin Holdings Sdn Bhd has revised its offer price for SPB again, to RM6.30 from RM6 per share previously.

In a filing with Bursa Malaysia, SPB said it has deliberated on the revised offer price, which will be included in the proposed selective capital reduction and repayment (SCR) exercise to be tabled to its shareholders.

Kayin is the vehicle of the Wen family who holds a 68.25% stake in SPB and is vying to take SPB private.

Consequent to the revision of the offer price, the entitled shareholders will receive a total capital repayment of RM687.7 million, representing a cash repayment of RM6.30 per share.

The issued share capital of SPB will be reduced by up to RM687.7 million pursuant to the proposed SCR.

As the issued share capital to be reduced is higher than the existing issued share capital of SPB of RM545.3 million, SPB will undertake a bonus issue of up to 382.0 million bonus shares by way of capitalising up to RM382.0 million from the retained earnings of the company.

The revised offer price represents a premium of 55.24% against its five-day volume weighted average price of RM4.05 up to Oct 24, 2018.

This is the second revision of the offer price by Kayin. To recap, SPB had on Oct 25, 2018 announced Kayin’s intention to privatise the company by way of a proposed SCR exercise at an offer price of RM5.70 per share.

Subsequently on Dec 17, 2018, Kayin revised its offer price from RM5.70 to RM6 per share.


Kayin raises offer price for Selangor Properties again to RM6.30 apiece

PETALING JAYA: In a bid to sweeten the privatisation deal, Selangor Properties Bhd’s (SPB) largest shareholder Kayin Holdings Sdn Bhd has revised its offer price for SPB again, to RM6.30 from RM6 per share previously.

In a filing with Bursa Malaysia, SPB said it has deliberated on the revised offer price, which will be included in the proposed selective capital reduction and repayment (SCR) exercise to be tabled to its shareholders.

Kayin is the vehicle of the Wen family who holds a 68.25% stake in SPB and is vying to take SPB private.

Consequent to the revision of the offer price, the entitled shareholders will receive a total capital repayment of RM687.7 million, representing a cash repayment of RM6.30 per share.

The issued share capital of SPB will be reduced by up to RM687.7 million pursuant to the proposed SCR.

As the issued share capital to be reduced is higher than the existing issued share capital of SPB of RM545.3 million, SPB will undertake a bonus issue of up to 382.0 million bonus shares by way of capitalising up to RM382.0 million from the retained earnings of the company.

The revised offer price represents a premium of 55.24% against its five-day volume weighted average price of RM4.05 up to Oct 24, 2018.

This is the second revision of the offer price by Kayin. To recap, SPB had on Oct 25, 2018 announced Kayin’s intention to privatise the company by way of a proposed SCR exercise at an offer price of RM5.70 per share.

Subsequently on Dec 17, 2018, Kayin revised its offer price from RM5.70 to RM6 per share.


CEPCO eyes foreign markets

KUALA LUMPUR: Concrete Engineering Products Bhd (CEPCO), which expects 2019 to be another challenging year for the group, is shifting its focus to overseas market in order to reduce its losses in financial year ending Aug 31, 2019 (FY19).

The group is principally engaged in manufacturing and distribution of pre-stressed spun concrete piles and poles.

In FY18, CEPCO’s net loss widened to RM5.57 million, compared with RM5.23 million in FY17. Its revenue declined 9.7% to RM161.95 million, from RM179.4 million previously.

Speaking to reporters after its AGM and EGM today, managing director Leong Kway Wah (pix) said last year, the group was impacted by lack of sales orders and cancellation or suspension of several key infrastructure projects, coupled with the increase in steel bar prices of about 20%.

Therefore, Leong said the group is exploring new markets like Papua New Guinea, Vietnam, Bangladesh and Myanmar to mitigate the shortfall in its local orders in anticipation of a slowdown in the construction industry moving forward.

Currently, he said the group exports a substantial quantity of products to the overseas markets covering Indonesia, Brunei, Singapore, Maldives as well as Nigeria.

For FY19, Leong said he expects the revenue derived from overseas will continue to contribute substantially to the group’s total revenue, increasing to about 45%, from 39% in FY18.

To note, the group’s export sales had increased to 39% of total revenue during FY18 from only 7% in FY17.

To date, CEPCO’s outstanding order book stands at RM62 million with export sales making up 30% of the total. It is also tendering for RM300,000 to RM400,000 worth of jobs, of which 90% are overseas projects.

Nevertheless, Leong said the group expects its ongoing infrastructure projects in East Malaysia will not be adversely affected by the government expenditure cutback and remains an area where the group could secure a fair share of new orders.

Meanwhile, he said the group’s measures to address margin compression include shifting and concentrating production within its cluster of factories in the central region to optimise and lower production costs; negotiating for lower shipping costs for overseas and local markets; cutting outsourced labour costs; and exploring the feasibility of acquiring own quarry to reduce raw material costs.

Leong said the group is also negotiating with key raw material suppliers to fix pricing during the low delivery period to prevent costs escalation.

“We expect steel raw material prices to stabilise this year and hopefully this will help to arrest further deterioration on our margin,” he added.

At its EGM earlier, the group obtained its shareholders’ approval for its proposed two-for-three bonus issue of 29.85 million shares held by entitled shareholders.