Guan Chong proposes bonus issue, free warrants

  • Corporate News
  • Tuesday, 20 Aug 2019

KUALA LUMPUR: GUAN CHONG BHD has proposed a one-for-one bonus share issue and a one-for-three issue of free warrants.

The proposals if approved would entail the issuance of up to 527.94 million bonus shares and 175.98 million free warrants.

Guan Chong's share price ran ahead of the announcement, advancing 33 sen to RM3.86 on Tuesday before trading in the counter was halted until 3.30pm on the same day.

The share price was lifted on positive earnings announced after trading hours on Monday, showing a 41.75% year-on-year jump in net profit to RM61mil in the second quarter ended June 30.

In a stock exchange filing, the company said the warrants will have a three-year tenure and an exercise price of RM1.65 per warrant, representing a 5.04% discount to the theoretical ex-bonus price of the company's shares of RM1.7376 based on the five-day volume weighted average market price of Guan Chong shares up to Aug 16.

Guang Chong is also pending a decision by Bursa Securities on a time extension for the implementation of a private placement of up to 47.78 million new shares, or 10% of its share capital.

Upon the successful completion of the private placement, bonus issue and full exercise of the warrants, Guan Chong would have an enlarged share capital of 1.23 billion shares

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