Eco World proposes one-for-five bonus issue of warrants


In a filing with Bursa Malaysia, the property developer said the proposed bonus issue of warrants would entail up to 693.95 million new warrants on the basis of one new warrant for every five existing Eco World shares held by the entitled shareholders on an entitlement date to be determined and announced later.

PETALING JAYA: Eco World Development Group Bhd has proposed to undertake a bonus issue of warrants to strengthen its financial position and capital base as well as providing additional working capital for the group.

In a filing with Bursa Malaysia, the property developer said the proposed bonus issue of warrants would entail up to 693.95 million new warrants on the basis of one new warrant for every five existing Eco World shares held by the entitled shareholders on an entitlement date to be determined and announced later.

The new warrants would be issued at no cost to the entitled shareholders, it said.

Based on the total number of 2.94 billion issued shares as at Jan 3, 2022, being the latest practisable date prior to the date of this announcement (LPD), the exercise would involve an issuance of 588.87 million new warrants under a minimum scenario ot 693.95 million new warrants under a maximum scenario.

For illustrative purposes, the indicative exercise price of the new warrants is assumed at RM1.03 each throughout this announcement, which represents a premium of 17 sen or 20% over the five-day volume weighted average market price of the shares up to and including the LPD of 86 sen per Share.

“The board wishes to emphasise that the illustrative exercise price of the new warrants of RM1.03 each should not be taken as an indication of or reference to the actual exercise price of the new warrants, which will be determined and announced at a later date,” it said.

Eco World pointed out that the proposed bonus issue of warrants was not expected to have any material effect on the group’s earnings for the financial year ending Oct 31, 2022.

However, assuming that the earnings of the group remain unchanged, the earnings per share of the group would be proportionately diluted as a result of the increase in the number of shares in issue as and when the new warrants are exercised.

“Nonetheless, the proposed bonus issue of warrants is expected to contribute positively to the future earnings of the group when the benefits of the use of proceeds from the exercise of new warrants are realised,” it said.Barring unforeseen circumstances, the proposed bonus issue of warrants is expected to be completed by first half of 2022. Eco World’s shares rose 1.5 sen to close at 88.5 sen yesterday.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

T7 Global posts net profit of RM2.72mil in 1Q
Malaysia's recovery continues to be resilient, March's LI up to 111.3 points
Bumi Armada posts improved 1Q net profit of RM185.76mil
FBM KLCI stays positive as Asia shrugs off Wall St weakness
CPI rises 2.3% in April, with food inflation higher at 4.1%
Elon Musk drops out of US$200bil club again as Tesla tumbles
Latex goods account for 83.1% of total exports for rubber products in Q1 2022
Ringgit opens marginally higher as greenback demand eases
Singapore economy expands 3.7% in Q1 2022
Leong Hup faces near-term headwinds

Others Also Read