SCIB shareholders approve 3-for-1 bonus issue during virtual EGM

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KUALA LUMPUR (Nov 17): Sarawak Consolidated Industries Bhd (SCIB)'s shareholders have approved the company's proposed three-for-one bonus issue and free warrants during a virtual EGM held today.

SCIB said in a statement that the virtual EGM was convened for the bonus issue of 367.9 million new ordinary shares in the company on the basis of three bonus shares for every one existing SCIB share held on an entitlement date to be determined and announced later.

The integrated civil construction provider will also issue 245.265 million free warrants on the basis of one warrant for every two SCIB shares held on an entitlement date to be determined and announced later.

The entitlement date for the issue of free warrants will be determined after the listing of the bonus shares.

Accordingly, the exercise price of the warrants will be set at a premium of up to 30% to the trading price of SCIB shares after the listing of bonus shares.

“The board, in arriving at the basis to set the exercise price at a premium of up to 30% based on the share price of SCIB post-the listing of bonus shares, has taken into consideration its current order book of approximately RM1.4 billion, which is expected to contribute positively to the future earnings of the group and provide earnings visibility of up to four years,” it said in a statement.

Barring any unforeseen circumstances, the aforesaid earnings are expected to translate into a future appreciation of earnings per share/share price of SCIB.

SCIB group managing director/chief executive officer Rosland Othman said: “We are happy to receive the overwhelming support of our shareholders through the passing of all the resolutions.

"We are optimistic about our current and long-term prospects and will continue to work hard to honour the trust our shareholders have placed with us.”

Rosland said the proposed bonus issue and free warrants are a way of rewarding SCIB's shareholders who have been loyal and supportive.

"The bonus issue of shares will increase the number of shares in SCIB at no cost to current shareholders while at the same time potentially improving the liquidity of the shares for trading purposes at an affordable price.

"This issuance of shares will encourage greater participation by investors and widen as well as increase the profile of the company,” he added.