KUALA LUMPUR (Nov 15): Xidelang Holdings Ltd plans to undertake a bonus issue on the basis of one bonus share for every Xidelang share to make its shares more affordable and appealing.

It said the proposed bonus issue would result in an adjustment to the market price of Xidelang shares by half its current trading price. Based on the last traded price of the shares as at Nov 9 of 29 sen, Xidelang shares' reference price would be adjusted to 14.5 sen after the proposed bonus issue.

"This in turn may lead to enhanced trading liquidity of Xidelang shares on Bursa Securities Malaysia Bhd through greater participation by investors and broaden the shareholder base of the company," the group said in a filing with Bursa Malaysia today.

Xidelang said the exercise would involve the issuance of up to 894.17 million bonus shares to shareholders. The entitlement date would be determined and announced later.

For illustration, the ringgit figures are based on the exchange rate of RMB1 to 63.51 sen and US$1 to RM4.216 as at Nov 9, 2017, being the latest practicable date.

As at Nov 9, Xidelang's issued and paid-up share capital is US$26.95 million comprising 673.87 million shares (excluding 250 shares held as treasury shares) and 220.3 million outstanding Xidelang warrants 2015/2018 (Warrants C).

Xidelang said it would not purchase any additional shares after its share buy-back exercise until the completion of the proposed bonus issue, and has no intention to resell and/or distribute the treasury shares.

On completion of the exercise, Xidelang said its share capital could be enlarged to a minimum of RM227.28 million with 1.34 billion shares or a maximum of RM301.58 million with 1.78 billion shares.

Xidelang, which expects the proposed exercise to be completed by the first quarter of 2018, saw its shares close up half sen or 1.75% at 29 sen for a market capitalisation of RM192.05 million.