KUALA LUMPUR (April 16): Salcon Bhd is proposing a one-for-four bonus issue of up to 169.42 million new shares to reward its shareholders and boost liquidity of the shares.
It is also proposing to issue up to 338.85 million free warrants on the basis of one warrant for every two shares held.
In a filing with Bursa Malaysia today, Salcon said the bonus issue will be implemented concurrently with the proposed free warrants issue. The entitlement date of both exercises is yet to be determined by the company.
"The proposed bonus issue will be implemented by capitalising RM84.7 million from the company’s share premium account at 50 sen per bonus share," it added.
As for the warrants, the exercise price has been fixed at 30 sen, which represents a 2.24% discount to the theoretical ex-bonus price of 30.69 sen per share, calculated based on the five-day volume-weighted average market price of the shares up to and including April 13 of 38.36 sen per share.
"The proposed free warrants issue will not raise any immediate funds as the warrants will be issued at no cost to the entitled shareholders.
"However, assuming the full exercise of the warrants at the exercise price of 30 sen per warrant, the proceeds to be raised could range between RM100.97 million and RM101.65 million, which will be used to partly fund future capital expenditure and/or working capital," said Salcon.
The group expects to complete both proposals by the second half of 2018.
Salcon shares closed up 2.5 sen or 6.41% at 41.5 sen today, with 1.56 million shares done, bringing it a market capitalisation of RM279.33 million.