This article first appeared in The Edge Financial Daily, on April 28, 2016.

KUALA LUMPUR: Tadmax Resources Bhd has proposed a one-for-10 bonus issue of 44.48 million shares to reward its shareholders.

In a bourse filing, the construction company said it also intends to improve the marketability and trading liquidity of its shares, and widen its share capital base through the bonus issue.

The company said the entitlement date for the shares will be determined at a later date.

Tadmax said it has adequate reserves for the capitalisation required for the proposed issuance, based on its latest audited statements for the financial year ended Dec 31, 2015.

The bonus issue will reduce its retained earnings by RM22.24 million to RM44.56 million after the exercise is completed, from its retained earnings of RM66.8 million as at Dec 31.

Meanwhile, Tadmax’s issued and paid-up share capital will increase 10% to 489.23 million from 444.76 million shares as at April 20, 2016.

Tadmax shares rose 0.5 sen or 1.4% to 37 sen yesterday, translating into a market capitalisation of RM164.56 million.