This article first appeared in The Edge Financial Daily on December 12, 2017
KUALA LUMPUR: Furniture manufacturer SWS Capital Bhd has proposed a bonus issue of two new shares together with five warrants for every eight shares held.
In a filing with Bursa Malaysia, SWS Capital said the exercise involves the issuance of 36.47 million new shares and 91.17 million free detachable warrants. The warrants will have a five-year tenure, with an exercise price of 90 sen.
The price was fixed based on SWS Capital’s five-day volume weighted average market price of up to Dec 5. The proceeds raised from the warrants in future will be utilised for working capital, said SWS Capital.
The company expects the proposal, requiring shareholders’ approval, to be completed within two months. SWS Capital’s share price closed unchanged at RM1.31 yesterday, with a market capitalisation of RM191.1 million.