KUALA LUMPUR (May 10): EcoFirst Consolidated Bhd has proposed a bonus issue of up to 443.82 million warrants on the basis of one warrant for every two existing EcoFirst shares.

The entitlement date and exercise price of the warrants will be determined later, the property developer said in a bourse filing.

It said the warrants will be issued at no cost to shareholders and will be done in a single tranche, with the exercise expected to be completed by the third quarter of 2021.

EcoFirst said at the assumed conversion price of 40 sen apiece — a 2.12% premium to the five-day volume weighted average market price of EcoFirst shares up to May 7 of 39.17 sen — the bonus issue is expected to raise gross proceeds of RM177.53 million, more than half of its market capitalisation of RM344 million.

Such proceeds, if raised, will be placed in deposits with financial institutions and/or short-term money market instruments, the group said.

EcoFirst's share price closed unchanged at 40 sen, with 140,700 shares traded.