Karex proposes bonus issue


  • Business
  • Friday, 15 Nov 2013

PETALING JAYA: Condom maker Karex Bhd has proposed a bonus issue of 135 million new shares of 25 sen each on the basis of one bonus share for every two existing Karex shares held.

In a filing to Bursa Malaysia, the company said the exercise will increase the group’s share capital to RM101.3mil from RM67.5mil.

Subject to the approval from Bursa Securities and its shareholders, Karex expects the exercise to be completed in 90 days.

In a separate filing, Karex posted a net loss of RM457,000 for the first quarter ended Sept 30, 2013.

This was because it did not consolidate the results of its subsidiaries due to impracticability of an accounting cut-off date.

It will consolidate the results from Oct 1 onwards. However, if consolidated a year ago, Karex estimated it would record revenue at RM65.4mil, representing a 19% year-on-year increase.

The increase in revenue is attributed to higher volume of condom sales. Meanwhile, net profit stood at RM10.12mil, RM4.6mil higher than the previous year.

“The group’s prospects for the financial end year ending June 30, 2014 are expected to be favourable as we foresee an increase in orders from our clients.

“In addition, the group remains active in marketing our condoms by attending global trade fairs and exhibitions,” said chief executive officer Goh Miah Kiat.

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Business , Karex , condom , bonus issue , results

   

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