Inari announces one-for-two bonus issue to reward shareholders

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KUALA LUMPUR (Jan 29): Inari Amertron Bhd, whose share price has been spiralling up in the past 12 months, is proposing to undertake a one-for-two bonus issuance of up to 1.12 billion new shares to reward its shareholders.

In a filing with Bursa Malaysia this evening, Inari said the bonus shares will be credited as fully paid-up at 10 sen per share to entitled shareholders, on an entitlement date to be determined later.

The proposed bonus issue, according to the group, will see Inari capitalising up to RM112.08 million from its share premium account.

Following the exercise, Inari expects — under minimum scenario — its share base to expand from 2.06 billion to 3.27 billion and its share capital to increase from RM556.48 million to RM912.71 million.

Under maximum scenario, the group's share base could grow from 2.24 billion to 3.36 billion, with its share capital remaining unchanged at RM912.71 million.

The proposed bonus issue is not expected to have any immediate material effect on Inari's consolidated earnings for the financial year ending June 30, 2018 (FY18).

However, it said its consolidated earnings per share could be diluted as a result of the increase in the number of shares issued during the exercise.

Barring any unforeseen circumstances, Inari aims to submit the application for the proposed bonus issuance to the relevant authorities within two months from today. It added the proposals are expected to be completed by the second quarter of 2018.