KUALA LUMPUR (Sept 21): Newly listed precision engineering company, FoundPac Group Bhd, is proposing a 2-for-5 bonus issue and a share buy-back exercise that will involve the purchase of up to 10% of its total issued shares.

The proposed bonus issue of up to 148 million new ordinary shares will be offered on the basis of two bonus shares for every five existing FoundPac shares held, the group said in its filing with Bursa Malaysia this evening.

As for its proposed share buy-back, the group is looking to buy up to 10% of its total number of issued shares, to be financed via internal funds and/or external bank borrowings.

In its statement to the stock exchange, FoundPac said the group is also proposing the establishment of an employees' share option scheme (ESOS) involving up to 10% of its total number of issued shares.

FoundPac said the group will be receiving proceeds from the exercise of options by grantees under the proposed ESOS, but not from the proposed bonus issue and share buy-back schemes.

The amount of ESOS proceeds is yet to be determined at this juncture, but has been earmarked for general working capital requirements of the group, it said.

FoundPac said the proposed bonus issue and ESOS are expected to be completed by the first quarter of 2018.

As at Sept 20, FoundPac's total issued shares stood at 370 million shares, which will be enlarged to 569.8 million shares upon completion of the proposed ESOS and bonus issue.

FoundPac was listed on the Main Market of Bursa Malaysia December last year at 54 sen apiece.

The counter, which settled one sen or 1.14% higher at 89 sen today, gives it a market capitalisation of RM329.3 million. The stock has climbed 64.81% since its listing.