KUALA LUMPUR (June 3): DPI Holdings Bhd has proposed to undertake a bonus issue of new shares on the basis of one bonus share for every two existing DPI shares.

In a filing today, the Johor-based aerosol spray paint maker said the entitlement date will be determined later.

The one-for-two bonus issue of shares will result in the issuance of 243.37 million new shares and increase the group’s share base from 486.73 million shares to 730.1 million.

DPI said its share capital will remain unchanged at RM66.26 million.

For illustrative purposes, based on the five-day volume weighted average price (VWAP) of DPI shares up to and including the last practicable date (LPD) as of June 3 of 52.58 sen apiece, the theoretical ex-bonus share price of DPI shares is 35.05 sen.

The group said the bonus issue will provide shareholders with greater participation in the equity of the company.

It will also improve the trading liquidity of DPI shares as there will be a larger number of shares available. 

Barring any unforeseen circumstances and subject to all the required approvals being obtained, the proposed bonus issue is expected to be completed within the third quarter of 2021.

DPI's share price gained 1.5 sen to 56.5 sen, for a market capitalisation of RM275 million. There were 15.64 million shares traded today.

Prior to this, the stock hit its all-time high of 68.5 sen on April 19. It almost doubled from 28 sen on Jan 4.