KUALA LUMPUR : KPJ Healthcare Bhd's company issued warrants hit its limit up price of RM1.11 today due to renewed buying interest following the group's share split proposal last week.
As at 2:45PM, the warrants, KPJ-WB, was last traded at its limit up price on heavy turnover of 1.46 million shares. It is the top gainer today on Bursa Malaysia with an increase of 29.5 sen from yesterday's close of 81.5 sen.
KPJ's mother share was last traded at RM4.20 apiece after hitting an intraday high of RM4.30 earlier. It closed at RM4.13 on Tuesday. The stock is trading at its highest level since November last year.
KPJ-WB, which expires on January 23, 2019, carries an exercise price of RM4.01 and a one-to-one ratio. This means that the warrants are trading at a 21% premium to KPJ's mother share presently.
On April 20, KPJ announced a proposal to subdivide every one ordinary share into four ordinary shares at an entitlement date to be determined and announced later.
In a stock exchange filing, the group said that the proposed split will result in an adjustment to the market price of the ordinary shares in KPJ and will result in the shares being more affordable, thus potentially making it more appealing to a wider group of investors.