KUALA LUMPUR (Sept 28): My E.G. Services Bhd (MyEG) rose as high as RM2.81 or 3% this morning after the company proposed a bonus issue of up to 1.2 billion new shares, on the basis of one bonus share for every share held.

At 10.44am, MyEG gained 4 sen to RM2.76 with 1.9 million shares exchanging hands.

In a filing with Bursa Malaysia last Friday, MyEG announced its proposed bonus issue of up to 1.2 billion shares that is aimed at enlarging its share base, encouraging trading liquidity and enlarging the number of shares held by its existing shareholders.

While the proposed bonus issue is not expected to have any material effect on MyEG’s consolidated earnings for its financial year ending June 20, 2016, said MyEG, the earnings per share will reduce proportionately due to the additional shares issued.

MyEG aims to complete the exercise by the end of the first quarter of 2016.

In early September, electronic government service provider MyEG was awarded a six-month contract by the Immigration Department to register illegal foreign workers during the contract period which started from Sept 4.

This came after MyEG was awarded with the hotly debated foreign workers renewal permit by the Immigration Department earlier this year.

MyEG charges a fee of RM35, which will be borne by the government, for each foreign worker renewal permit processed.

(Note: 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.)