Caely slips 11.5% despite proposed bonus issue

PETALING JAYA: Shares of Caely Bhd fell as much as 11.5% in early trade following its proposed bonus issue of warrants.
At 11.30am, the stock declined 9 sen or 6.9% to RM1.22 on some 3.32 million shares done.
The bonus issue involving 40 million new warrants will be undertaken on the basis of one warrant for every two existing shares held.
Assuming full exercise of the warrants at the indicative exercise price of 50 sen per warrant, the lingerie firm said it could potentially raise gross proceeds of RM20 million.
Proceeds are to be used for the repayment of borrowings and future working capital requirements.