KUALA LUMPUR (Nov 19): Amtel Holdings Bhd, whose share price jumped 23 sen or 16.08% to close at its 14-year high of RM1.66 today, has proposed the issuance of bonus shares, together with free warrants, to reward its shareholders.

The bonus issuance will be on the basis of one bonus share for two existing shares held (one-for-two) on an entitlement date to be announced.

The free warrants, to be issued after the bonus issue, will be on the basis of one free warrant for every two existing shares held (one-for-two).

The plan involves the issuance of up to 32.52 million bonus shares and 48.78 million warrants, Amtel said in a filing with Bursa Malaysia.

The exercise price of the warrants has been fixed at 65 sen each, a discount of 155% from its RM1.66 closing price today. It also represents a discount of approximately 29.9% from the theoretical ex-bonus price (TEBP) of Amtel shares of 92.7 per share, based on the company’s five-day volume weighted average market price (VWAP) of RM1.39 per share, the filing read.  

Assuming all the warrants are exercised into Amtel shares, the warrants could raise up to RM31.71 million for Amtel, which it plans to use for future working capital and repayment of the group’s borrowings.

The information and communications technology company, which is mainly involved in the distribution and trade of telematics products, as well as electronic and telecommunications-related products, expects the proposals to be completed by the first quarter of next year.

Just a month ago, Amtel was slapped with an unusual market activity (UMA) query from Bursa Malaysia over a sharp rise in its share price. In response, Amtel said it was unaware of what could have spurred the spike.

Amtel shares, which were trading at 80 sen apiece on Oct 7, has since more than doubled. At the current share price of RM1.66, Amtel has a market capitalisation of RM107.96 million. It saw 1.38 million shares traded today, over 14 times its 200-day average volume of 93,173 shares.