KUALA LUMPUR (April 15): Damansara Realty Bhd (DRealty) has proposed to undertake a bonus issue of 154.68 million free warrants on the basis of one warrant for every two DRealty shares held, on an entitlement date to be announced later.
In a filing to Bursa Malaysia today, DRealty said that as at April 4, 2016, its paid up share capital stood at RM154.68 million, comprising 309.37 million shares.
Pursuant to the proposed bonus issue with warrants, a total of 154.68 million warrants will be issued. Accordingly, assuming all warrants are exercised, a maximum of 154.68 million new DRealty Shares will be issued.
The exercise price of the warrants has been fixed at 82 sen per warrant, representing a premium of approximately 4.46% to the 45-day volume weighted average market price (VWAMP) of DRealty shares, up to and including April 14, 2016 of 78.5 sen.
DRealty said the proposed bonus issue of warrants will not raise any funds upon its issuance, as these warrants will be issued at no cost to its entitled shareholders.
However, assuming full exercise of these warrants at an exercise price of 82 sen per warrant, a total of 154.68 million new shares will be issued and the company could potentially raise a maximum gross proceed of RM126.84 million.
The proceeds that should be raised as and when the warrants are exercised, shall be utilised for future working capital requirements of the DRealty group, which include amongst others, payments to trade and other payables, staff cost, as well as utilities and other operating expenses.
The proposed bonus issue with warrants is expected to be completed by the third quarter of 2016.
DRealty shares were up 2 sen (2.4%) to 85.5 sen today, for a market capitalisation of RM264.51 million.
DBHD (3484) - DRealty undertakes 1-for-2 bonus issue of warrants
http://www.theedgemarkets.com/my/article/drealty-undertakes-1-2-bonus-issue-warrants
