KUALA LUMPUR (April 1): SHH Resources Holdings Bhd has proposed a bonus issue of about 50 million  shares on the basis of one new share for every one existing share held on a date to be announced later.

The furniture maker said its share capital will increase to about 100 million shares following the issuance, from roughly 50 million shares now.

SHH Resources said based on the five-day volume weighted average price of its shares up to March 17 of RM1.016, the theoretical adjusted reference price of the bonus shares will be 50.8 sen.

In a filing with the stock exchange, the group said the bonus issue will boost shareholders' participation in its equity while retaining their percentage of equity interest held.

The bonus issue is also intended to improve the liquidity and marketability of SHH Resources shares while increasing the capital base of the group, it added.

Barring any unforeseen circumstances, it said the bonus issue is expected to be completed by the second quarter of 2021.

SHH Resources shares did not see any trading today. The counter last closed at RM1.11, valuing the group at RM55 million.

Over the past year, the stock has appreciated by more than three times from 31 sen.