Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 17): Protasco Bhd has proposed a bonus issue of up to 70.78 million shares on the basis of one bonus share for every six existing shares held.

The issuance also comes with a one-for-four warrants issue of up to 106.17 million warrants.

While the warrants are not expected to raise any immediate funds, Protasco said the group could raise up to RM104.05 million based on an illustrative exercise price of 98 sen per warrant and assuming the warrants are fully exercised.

The group said the bonus issue will be fully capitalised by its share premium account at 50 sen per bonus share.

Protasco said the proposals will enable shareholders to have a greater participation in its shares while maintaining their equity interest in the group, as well as allowing the group to utilise the amount standing to the credit of its share premium account.

Upon the completion of the proposals and full exercise of the warrants, Protasco’s share base will increase to 601.65 million from 424.21 million shares and its share capital to RM351.79 million from RM212.35 million.

Its gearing level will be lower at 1.15 times, compared with 1.37 times currently, while net asset will fall to 78 sen per share from 93 sen per share.

The group expects to complete the proposals by the second quarter of 2018, barring unforeseen circumstances.

Protasco’s share price closed up 1 sen or 0.91 percent at RM1.11, giving it a market capitalisation of RM470.87 million.

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