KUALA LUMPUR (April 13): Comfort Gloves Bhd’s share price rose as much as 10 sen or 4.39% to RM2.38 this morning after the rubber glove manufacturer proposed a bonus warrant issue.
At 9.51am, the counter had pared some gains at RM2.30, still up two sen or 0.88%. It had seen 6.89 million shares change hands so far.
Comfort Gloves announced yesterday it will issue 174.13 million warrants on the basis of three warrants for every 10 ordinary shares held in the company.
At the assumed conversion price of RM2.60 apiece, the group is expected to raise up to RM452.75 million for capital expenditure purposes.
The company also announced that it will execute an employee share scheme (ESS) of up to 15% of its total share base to eligible directors and employees.
Assuming that all of its warrants are exercised and the ESS is fully taken up, Comfort Gloves' share capital will be increased to 867.76 million shares from 580.44 million shares.