Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on October 10, 2018

Toyo Ink Group Bhd (+ve)
TRADING of shares in Toyo Ink Group Bhd (fundamental: 1.25/3; valuation: 1.2/3) triggered our stocks with momentum algorithm yesterday for the second time this year. The stock closed up 2.5 sen or 2.79% to 92 sen, with 1.3 million shares done versus the 200-day average volume of 189,170 shares.

On Aug 2, the group said it plans to issue one free warrant for every two shares of the group held at an entitlement date to be fixed to reward shareholders. The proposed exercise involves issuing up to 53.5 million free warrants, with a price fixed at RM1.50 each.

The group said if the warrants are fully exercised, it could raise gross proceeds of RM80.25 million for the group, which it intends to use for future working capital, including for payments of trade payables, staff costs and other operating expenses. Toyo Ink is currently trading at 0.81 times its net book value.

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