KUALA LUMPUR (April 12): Shares in Cocoaland Holdings Bhd surged as much as 26% to hit RM2.30 earlier this morning after the candy manufacturer last Friday proposed to undertake a one-for-one bonus issue.

At 10.24am, the counter had pared some of its gains, and was up by 23 sen or 12.57% at RM2.06. Some 756,900 shares had been traded at the time of writing versus its 200-day average volume of 113,718 shares. It currently had a market capitalisation of RM471.33 million.

The stock opened at RM2.20 today, 20% higher than the previous trading day’s closing at RM1.83.

Notably, Cocoaland shares have not closed above the RM2 level since the start of 2020. Over the past year, the counter gained some 20.5% from RM1.71.

The last time the counter closed above the RM2.30 level was back in August 2018.

In a filing with Bursa Malaysia last Friday, it proposed to undertake a bonus issue of 228.8 million shares on the basis of one bonus share for every one existing share held at a date to be announced later to reward shareholders for their loyalty and continued support for the group.

Barring any unforeseen circumstances, the proposed bonus issue is expected to be completed by the second quarter of this year (2Q21), said the group.

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Cocoaland proposes one-for-one bonus issue