KUALA LUMPUR (July 9): Muar Ban Lee Group Bhd’s (MBL) share price rose as much as 26 sen or 19.4% to RM1.60 in morning trade today after the palm kernel expeller manufacturer proposed yesterday a bonus issue of up to 147.13 million shares on the basis of one bonus unit for one existing unit held.

On Bursa Malaysia today, MBL shares pared gains to RM1.34 at 9.14am before changing hands at RM1.56 at 9.27am with 1.18 million units traded. 

At RM1.56, MBL had a market capitalisation of RM135.69 million.

Yesterday, MBL said in a Bursa filing it intends to undertake the bonus issue to reward existing shareholders for their loyalty and continuing support as the corporate exercise serves to increase the number of MBL shares held by shareholders with no cash outlay while maintaining their percentage of equity shareholding in the group.

Upon completion of the bonus issue, the enlarged issued share capital of MBL, including treasury shares, will comprise 294.25 million shares under the maximum scenario, which assumes all 38.02 million outstanding warrants-A in MBL are exercised prior to the bonus issue entitlement date, according to MBL.

The company said that under the minimum scenario, which assumes the 38.02 million warrants are not exercised prior to the bonus issue entitlement date, the company’s enlarged issued share capital will comprise 218.22 million shares.

According to MBL, as at June 30, 2020, its issued share capital, including treasury shares, comprised 109.11 million shares. The company said it had 7.61 million treasury shares.