KUALA LUMPUR (April 9): Snack product manufacturer Cocoaland Holdings Bhd has proposed to undertake a bonus issue of 228.8 million shares on the basis of one bonus share for every one existing share held on a date to be announced later.

In a filing with Bursa Malaysia today, it said the bonus issue serves to reward the shareholders for their loyalty and continued support to the group.

Cocoaland added that the proposed bonus issue also enables the existing shareholders to have greater participation in the equity of the company, encourages trading liquidity and marketability of Cocoaland shares on the Main Market via a larger base, and maintains the company’s reserves and total net asset.

“For illustrative purpose only, based on the three-month VWAMP [volume weighted average market price] of the Cocoaland Shares up to and including the LPD [latest practicable date] of RM1.7315, the theoretical ex-bonus share price of Cocoaland Shares shall be approximately 86.58 sen,” said the group in a filing with Bursa Malaysia today.

Cocoaland said the proposed bonus issue is not expected to have any material effect on the earnings of the group.

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

Cocoaland rose two sen or 1.1% to RM1.83 today, giving the company a market capitalisation of RM418.7 million.