Thursday 28 Mar 2024
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KUALA LUMPUR (March 19): Cabnet Holdings Bhd has proposed a bonus issue of warrants on the basis of one warrant for every two shares held, alongside a three-for-eight bonus issue of its shares.

As at March 15, Cabnet has issued share capital of RM22.66 million comprising 130 million shares. The proposals will entail an issuance of 65 million bonus warrants, as well as 48.75 million bonus Cabnet shares, it said in a filing.

"The proposed bonus issue of shares will be implemented by way of capitalisation of 10 sen for each bonus share of RM4.84 million from the share premium account of the company and the remaining RM36,000 from the retained profits account of the company," said Cabnet.

On the other hand, the bonus warrants will have a three-year tenure, it said.

While the final exercise price will be finalised later, Cabnet presented its illustrative exercise price at 40 sen, or a 9.1% discount to the theoretical ex-bonus price of its shares of 44 sen based on the volume weighted average price (VWAP) of Cabnet shares for the five-day period ended March 15.

Both the bonus warrants and shares will not be implemented in stages, said Cabnet. It expects the proposals to be completed in the second quarter of 2018.

Shares of Cabnet peaked in the early days of its ACE Market debut, hitting 73 sen twice in its first two weeks of trading. The counter is now trading slightly higher than its IPO price of 56 sen, closing 1.5 sen or 2.46% lower from Friday's close at 59.5 sen for a market capitalisation of RM77.35 million.

 

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