Borneo Aqua Harvest proposes 1-for-1 bonus issue

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KUALA LUMPUR (Sept 4): Borneo Aqua Harvest Bhd has proposed a bonus issue of up to 939 million shares, on the basis of one bonus share for every existing share.

“The proposed bonus issue shall be wholly capitalised from the share premium of the company,” the group said in a stock exchange filing today.

This will involve between RM60.89 million and RM93.9 million being capitalised, leaving the group with a remaining share premium of between RM85.99 million and RM119 million.

Borneo Aqua said the actual number of bonus shares will depend on the total number of shares in issue on the entitlement date.

The group currently has an issued share capital of 608.88 million shares, as well as 300 million outstanding warrants and 30.12 million outstanding options under its employee’s share option scheme.

Assuming a maximum scenario, the group will have an enlarged share capital of 1.88 billion shares, worth RM478.27 million.

“After due consideration, the board is of the view that the proposed bonus issue is the most appropriate avenue of rewarding the existing shareholders of the company, while at the same time enhancing the company’s capital base,” the group said.

Thisis because the proposed issuance will enable the company to utilise its share premium reserves, increase the number of shares held by existing holders, and possibly encourage trading liquidity, it said. 

The bonus issue, which is subject to approvals from its shareholders and Bursa Securities, is expected to be completed by the fourth quarter of 2018, the filing added. 

Shares of Borneo Aqua closed up 2 sen or 1.72% at RM1.18 today, leaving the group with a market capitalisation of RM718.47 million.