KUALA LUMPUR: Ni Hsin Group Bhd
has proposed a bonus issue of up to 312.65 million free warrants on the basis of one warrant for every two shares held.
The entitlement date is yet to be determined and will be announced at a later date.
The group said Warrants C will be issued at no cost to the entitled shareholders, with a tenure of five years from the date of issuance.
According to Ni Hsin, the exercise will be determined after it has obtained all relevant approvals, at a discount of not more than 20% of the theoretical ex-all price of Ni Hsin shares based on the five-day volume weighted average market price (VWAMP)
For illustration purposes, the company assumed an indicative exercise price of 36 sen, which represents a discount of about 19.59% to the five-day VWAMP of 44.77 sen up to Oct 22, 2026.
Assuming the full exercise of the warrants, the company would raise gross proceeds of approximately RM112.55mil, which will go towards working capital and capital expenditure.
"Upon the exercise of the Warrants C, the proceeds will provide the working capital and financial capacity required to scale our business and the introduction of our products into new markets," said managing director of the subsidiaries of Ni Hsin Group Khoo Chee Kong in a statement.
The exercise is expected to be completed by the first quarter of 2027.
M&A Securities Sdn Bhd has been appointed as the principal adviser for the proposed bonus issue of warrants.
