KUALA LUMPUR (Nov 16): Shares of Flonic Hi-Tech Bhd fell 10% at mid-morning today after it proposed a special issue of up to 172 million new shares, which are to be placed out to independent third party Bumiputera investor(s), thus enabling the company to meet its Bumiputera equity compliance.

At 10am, Flonic fell half a sen to 4.5 sen with 200,000 shares done.

The proceeds raised from the proposed special Bumiputera issue of up to RM8.6 million will be used for working capital.

In its filing with Bursa today, Flonic said the issue price of the special issue shares will be determined and fixed by the board of directors at a later date, after all relevant approvals have been obtained.