KUALA LUMPUR (Oct 20): Luxchem Corp Bhd rose 12.5% on the back of the industrial chemical distributor's proposed bonus share issue.
At 10.09am, Luxchem increased 17 sen to RM1.53 after hitting an intraday high of RM1.55. A total of 319,200 shares changed hands.
Last Friday, Luxchem proposed a bonus issue of 130 million new shares on the basis of one bonus unit for one existing share held by shareholders.
Upon completion of the bonus issue, the issued and paid-up share capital of the company will be RM130 million comprising 260 million shares.
Luxchem said besides rewarding existing shareholders of the company, the bonus issue was proposed to increase the capital base of the group to better reflect its current scale of operations.
According to Luxchem, the bonus issue also aims to encourage greater participation from a broader range of investors in the company’s equity.