KUALA LUMPUR: Powerwell Holdings Bhd
has proposed a bonus issue of 116.1 million warrants on the basis of one warrant for every five existing shares held
The warrants, which will be issued at no cost to entitled shareholders, will have a tenure of five years.
“The group is grateful for the continuous support of its shareholders and would like to take this opportunity to express its appreciation for the confidence and patience placed in Powerwell as it continues on its growth journey.
“This initiative serves as an additional avenue to reward shareholders, complementing the group's steady stream of dividends,” the electrical power distribution equipment manufacturer said in a statement.
It added that the exercise offers shareholders an opportunity to increase their equity participation by exercising the warrants at a predetermined price during the tenure, while also allowing them to benefit from any future capital appreciation in the group's shares.
The group said proceeds from the exercise of the warrants, if any, would be used for working capital purposes, providing funding without incurring interest costs associated with bank borrowings.
The board intends to fix the exercise price at a premium of up to 50% to the five-day volume-weighted average market price (VWAP) of Powerwell shares immediately preceding the price-fixing date.
For illustration purposes, the indicative exercise price has been assumed at RM1.10 per warrant, representing a premium of about 38.45% to the five-day VWAP of RM0.7945 up to the latest practicable date. The actual exercise price will be determined and announced at a later date.
Powerwell said the amount of proceeds to be raised will depend on the final exercise price and the number of warrants exercised during the five-year period.
The proposed bonus issue of warrants is expected to be completed in the fourth quarter of 2026, subject to shareholders' and regulatory approvals.
