Prolexus proposes bonus issue

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KUALA LUMPUR (Oct 24): Garments manufacturer Prolexus Bhd has proposed a two-for-five bonus issue with the issue of up to 36.9 million bonus shares.
In a filing to Bursa Malaysia today, Prolexus said it would issue up to 36.95 million bonus shares on the basis of two bonus shares for every five existing shares held by the shareholders.
It said that the proposed bonus issue would be fully capitalised from the company’s retained profits.
“The board confirms that the reserves required for the capitalisation of the proposed bonus issue based on the latest audited financial statements for the FYE July 31, 2014 are adequate and unimpaired by losses on a consolidated basis,” it said.
Prolexus noted that the proposed bonus issue was to increase the company’s share capital base to better reflect the scale of operations and assets employed by the group.  
The proposed bonus issue is expected to be completed by the first quarter of 2015, it said.
RHB Investment Bank has been appointed as the adviser for the proposed bonus issue.