KUALA LUMPUR (July 23): Seni Jaya Corp Bhd, which recently proposed a private share placement, has announced a proposal to undertake the bonus issue of warrants on the basis of one bonus warrant for every two existing ordinary shares.

In a statement, the Main Market-listed leading provider of outdoor advertising services said the exercise entails the issuance of up to 24.32 million warrants under the maximum scenario, which assumes the completion of the private placement prior to the entitlement date of the warrants.

This means that investors who take up the share placement would be entitled to the bonus issue. 

Seni Jaya said the entitlement date will be determined and announced later.

The exercise price of the warrants shall be determined later and will take into consideration the historical share price movement, the five-day volume-weighted average market price (5D-VWAMP) of Seni Jaya shares and prevailing market conditions.

For illustrative purposes, the company may potentially raise gross proceeds amounting up to RM56 million based on an indicative exercise price of RM2.3025 and assuming full exercise of the warrants.

“These are exciting times for Seni Jaya as we are currently undergoing a transformation towards digitalisation and market repositioning to boost our industry standing in today’s digital-centric world,” said its chief executive officer (CEO) Cheah See Heong.  

Cheah added that the potential proceeds to be raised from the exercise of the warrants will provide additional funds for capital expenditure (capex) and future business expansion, hence accelerating the group’s efforts to expand product portfolios to provide comprehensive outdoor media solutions, especially for the digital and technological segments.

The proposed bonus issue of warrants is subject to regulatory approval, as well as shareholders’ approval in an extraordinary general meeting (EGM) to be convened. 

Barring any unforeseen circumstances, the exercise is expected to be completed by the third quarter of 2021 (3Q21).

Seni Jaya was traded unchanged at RM2.29 at 2.45pm today, giving it a market capitalisation of RM93 million, with 558,000 shares traded.

Year to date (YTD), the stock had jumped 190% from 80 sen on Jan 8, 2021.