Engtex proposes 3-for-4 bonus issue

KUALA LUMPUR: Engtex Group Bhd has proposed to undertake a bonus issue of up to 414.30 million new shares on the basis of three bonus share for every four existing shares.

As at May 31, the group's total number of shares stood at 443.32 million, including 1.9 million treasury shares.

In a filing with Bursa Malaysia today, the company said the exercise is to reward its existing shareholders for their continuous support and encourage trading liquidity and affordability on the Main Market.

"Besides, the bonus issue will also encourage greater participation by investors and potentially widen the share spread to a wider pool of investors," it said.

The company said the bonus issue will be done via a single issuance and not on a staggered basis.

It added that the bonus shares will be issued as fully paid, at no consideration and without capitalisation of the company’s reserves.

Engtex noted that the bonus issue is not expected to have any effect on the consolidated earnings of the group for the financial year ended Dec 31, 2024.

The exercise is expected to be completed by third quarter of 2024. - Bernama