Kerjaya Prospek proposes 6-for-5 bonus shares, free warrants

PETALING JAYA: Kerjaya Prospek Group Bhd proposes a bonus issue of up to 677.44 million new shares on the basis of six bonus shares for every five existing shares held.
It also proposes a bonus issue of up to 169.36 million new warrants on the basis of six bonus warrants for every 20 existing shares held.
Upon completion of the proposals, Kerjaya Prospek's enlarged share capital of on a fully diluted basis will amount to 1.41 billion shares.
The group said the proposed issuances are intended to reward its shareholders and allow them to have greater participation in the equity of Kerjaya Prospek in terms of numbers of shares while retaining their percentage of equity interest held.
"Additionally, the proposed issuances are also expected to improve the trading liquidity and marketability of Kerjaya Prospek shares on the Main Market of Bursa Securities whilst increasing the capital base of the group."
Kerjaya Prospek said the gross proceeds expected to be raised upon full exercise of the bonus warrants based on the indicative exercise price of RM1.59 per bonus warrant is about RM269.3 million, which will be utilised as additional working capital for the group as well as to finance, amongst others, payment to trade and other payables, staff costs and other operating expenses such as rental and utilities.
The group's current outstanding order book stands at RM3.2 billion. Last year, it clinched total contracts worth RM1.4 billion.
The company’s share price was up five sen to close at RM4.08 with some 742,500 shares changing hands.