Pecca proposes 3-for-1 bonus issue


KUALA LUMPUR: Pecca Group Bhd has proposed to undertake a bonus issue of up to 564 million new ordinary shares on the basis of three bonus shares for every one existing Pecca share held.

In a filing with Bursa Malaysia today, Pecca said that in addition to rewarding its shareholders for their loyalty and continued support, the exercise will serve to provide existing shareholders with greater equity participation while maintaining their percentage of equity shareholding.

This will also potentially result in the improvement of trading liquidity of Pecca's shares, it said.

Pecca said its reserves and total net assets would be maintained as the proposed bonus issue would be implemented via the adoption of the enhanced bonus issue framework without capitalisation of the company’s reserves.

As of Sept 30, 2021, Pecca’s cash and cash equivalent stands at RM64.35mil, which the company says it will utilise through value-accretive efforts and seek suitable merger & acquisition or joint-venture opportunities that can enhance the earnings visibility of the company moving forward.

Pecca said leather and healthcare businesses would continue to be the two core engines that generate revenue for the company.

The actual number of bonus shares to be issued pursuant to the proposed bonus issue will be based on the total number of shares of Pecca in issue on the entitlement date, which will be determined and announced by the board at a later date.

Pecca expects to complete the proposed bonus issue by the first quarter of 2022, after obtaining shareholders’ approvals.

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Pecca , bonus issue , liquidity

   

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