KUALA LUMPUR (Jan 20): Dufu Technology Corp Bhd, whose share price hit a record high of RM4.02 last Friday (Jan 17), is proposing to undertake a bonus issue, on the basis of one bonus share for every one Dufu share held, at an entitlement date to be fixed.

The exercise is expected to involve the issuance of up to 267.62 million new shares, the micro-precision machining manufacturer's stock exchange filing today showed.

The proposed issuance is intended to reward the group's existing shareholders for their loyalty and continuing support for the group.

Additionally, the bonus issue will enable Dufu's shareholders to have greater participation in its equity while maintaining their percentage of equity interest held, and also possibly encourage trading liquidity and marketability of Dufu shares.

Dufu said the proposed bonus issue is expected to be completed by the third quarter of 2020, subject to the approval from authorities and shareholders.

Dufu shares closed unchanged at RM4.02 today, bringing it a market capitalisation of RM1.03 billion. The counter saw some 1.13 million shares traded. Over the past one year, the stock's share price has surged over two times from when it was trading at RM1.49.