KUALA LUMPUR (June 10): Steel product and equipment maker Prestar Resources Bhd has proposed to undertake a bonus issue of up to 135.48 million shares on the basis of three bonus shares for five existing shares on an entitlement date to be determined later.

In a bourse filing today, it said the bonus issue is the most appropriate avenue to reward their shareholders as it will enlarge the number of shares held by them while maintaining their percentage of equity shareholding in the company.

Besides, Prestar said the bonus issue aims to provide marketability and trading liquidity of the shares on the Main Market and encourage greater participation by investors as well as potentially broadening the shareholder base of the company.

It said the share price adjusted for the proposed bonus issue shall not be less than 50 sen based on the daily volume weighted average (VWAMP) of Prestar shares during the three-month period before the application date.

According to the group, the theoretical ex-bonus price for its shares is expected to be between 59.63 sen and 86.92 sen.

Prestar also said that the bonus issue is not expected to have any material effect on the earnings of the group for the financial year ending Dec 31, 2021.

Barring any unforeseen circumstances, the proposed bonus issue is expected to be completed by the third quarter of 2021.

Prestar rose three sen or 2.63% to close at RM1.17, bringing its market capitalisation to RM250.55 million.