Engtex proposes one-for-two bonus issue

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KUALA LUMPUR (Sept 26): Engtex Group Bhd has proposed a one-for-two bonus issue of up to 148.5 million shares to reward its shareholders, while also enhance the trading liquidity of its shares.

In a filing with Bursa Malaysia, the pipe manufacturer said the bonus issue will be on a basis of one bonus share for every two shares held by shareholders.

To accommodate the proposed bonus issue, Engtex will also increase its authorised share capital to RM500 million comprising one billion shares of 50 sen par each, from RM200 million comprising 400 million shares of 50 sen par each.

“Barring any unforeseen circumstances and subject to receipt of all required approvals, the board expects the proposals to be completed in the fourth quarter of 2014,” said the group.

Engtex said the entitlement date for the bonus issue will be determined and announced at a later date.

The counter closed 2 sen higher at RM2.09 today, with a market capitalisation of RM406.6 million.