Borneo Oil Bhd (-ve)
SHARES in Borneo Oil Bhd (fundamental: 1.1/3, valuation: 1.7/3) closed 0.5 sen or 2.7% lower at 18 sen.
The stock saw some 101.23 million shares traded, far above its 200-day average volume of 29.47 million shares.
Last Monday, Borneo Oil announced it was planning a bonus issue of 2.11 billion shares on the basis of four bonus shares for every eight existing shares held, and 528.09 million warrants on a one-for-eight basis.
The proposed bonus share issuance, to be implemented concurrently with the proposed bonus warrants, is to reward the company’s existing shareholders and enhance its capital base.
At the current share price, Borneo Oil is trading at 0.94 times its book value.