KAB (0193) KEJURUTERAAN ASASTERA BERHAD proposes share split and one-for-two bonus issue of warrant
KUALA LUMPUR (Feb 10): Electrical and mechanical engineering services provider Kejuruteraan Asastera Bhd (KAB) has proposed to undertake a share split followed by a one-for-two bonus issue of warrants.
In a statement today, the company said the proposed share split entails the subdivision of every 10 existing KAB shares into 18 split shares.
It said depending on the number of KAB shares in issue as at the entitlement date for the share split, the company’s enlarged share capital may be subdivided up to 1.76 billion shares.
Meanwhile, the proposed bonus issue of warrants will entail the issuance of up to 881.9 million warrants on the basis of one free warrant for every two shares held on an entitlement date to be determined later. The exercise price of the warrants shall also be fixed on a later date.
Based on the indicative exercise price of 55 sen per warrant, the company expects to be able to raise up to RM485.1 million upon the full exercise of the warrants by the warrant holders.
KAB intends to implement the share split prior to the bonus issue of warrants.
“Essentially, we hope to increase the retail participation in the company by improving the share trading liquidity and marketability of KAB shares through these two corporate exercises.
“The adjustment in the market price of KAB shares as a result of the proposed share split is expected to result in the split shares being more affordable in order to appeal to a wider group of public shareholders and investors. The exercise of the warrants will also provide KAB with additional working capital,” said its managing director Datuk Lai Keng Onn.
Shares of KAB closed one sen lower at RM1.02, for a market capitalisation of RM958.74 million.
https://www.theedgemarkets.com/article/kejuruteraan-asastera-proposes-share-split-and-onefortwo-bonus-issue-warrant
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