Friday 29 Mar 2024
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KUALA LUMPUR (May 5): Homeritz Corp Bhd proposes a one-for-two bonus issue of 100 million new shares and 50 million warrants to reward shareholders.

In a filing with Bursa Malaysia today, the integrated furniture manufacturer said the bonus issue was to increase the number of shares held by the entitled shareholders, whilst maintaining their percentage of equity shareholding.

Homeritz (fundamental: 1.95; valuation: 1.5) said the bonus issue could also improve trading liquidity and marketability of its shares, by way of a larger capital base and enhanced investors' participation.

The entitlement date will be determined and announced at a later date, after all relevant approvals for the proposed bonus issue have been obtained.

Meanwhile, the group also proposed a free warrants issue of up to 50 million free warrants on the basis of one free warrant for every four existing Homeritz shares held.

It said the warrants will be issued at no cost to entitled shareholders.

"The final exercise price of the warrants shall be determined by the board and announced by the company at a later date, after obtaining the approvals of the shareholders of Homeritz and relevant authorities," it added.  

"Assuming all the 50 million warrants are fully exercised, the gross proceeds to be raised by the company shall be RM34.5 million, based on the indicative exercise price of 69 sen each," Homeritz said.

It said proceeds from the exercise of the warrants are proposed to be utilised for the group's working capital.

The corporate exercise is expected to be completed by the third quarter of this year.

Homeritz shares gained seven sen or 6.42% at RM1.16 sen today, giving it a market capitalisation of RM218 million.

(Notes: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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