SKB Shutters announces 2-for-1 bonus issue, free warrants

SKB Shutters announces 2-for-1 bonus issue, free warrants
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KUALA LUMPUR (Oct 20): SKB Shutters Corp Bhd has proposed to undertake a bonus issue of two new shares for every one share held.

The roller shutter and steel door manufacturer also announced free warrants on the basis of one warrant for every two shares held.

The entitlement dates for the two issues will be determined later, the group said in a filing with Bursa Malaysia.

SKB Shutters said the proposals, which are subject to shareholders' approval, could involve the issuance of 88 million bonus shares, and up to 66 million warrants.

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

Based on the five-day VWAP of SKB Shutters shares up to Oct 12, and the lowest daily VWAP of its shares during the past three-month period up to Oct 12, the theoretical ex-bonus price for its shares is expected to be between 55.97 sen and 50.33 sen.

Meanwhile, the group said the full exercise of warrants could raise up to RM26.4 million, based on an illustrative exercise price of 40 sen per warrant.

The group intends to use the proceeds for its working capital requirements.

SKB Shutters' share price closed down one sen or 0.55% to RM1.80, giving the group a market capitalisation of RM79 million. Year to date, the stock has tripled in value from 60 sen.

S Kanagaraju