KERJAYA (7161) - Kerjaya Prospek proposes 6-for-5 bonus issue

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KUALA LUMPUR (Jan 3): Kerjaya Prospek Group Bhd is proposing to undertake a bonus issue of up to 677.44 million new shares in the company on the basis of six bonus shares for every five existing Kerjaya Prospek shares held, on an entitlement date to be determined later.


In a filing with the stock exchange today, the group said it is also proposing a bonus issue of up to 169.36 million new warrants in Kerjaya Prospek, on the basis of six bonus warrants for every 20 existing Kerjaya Prospek shares held on the same entitlement date as the proposed bonus issue.
Upon completion of the proposals, the enlarged share capital of Kerjaya Prospek on a fully diluted basis will amount to 1.41 billion ordinary shares.

The proposed issuances are intended to reward Kerjaya Prospek's shareholders and allow them to have greater participation in the equity of the group in terms of number 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 while increasing the capital base of the company.


To recap, Kerjaya Prospek recently announced their highest ever nine-month performance for the period ended Sept 30, 2017, delivering a revenue of RM703.4 million and profit after tax of RM97.1 million. The group's net cash position as at Sept 30, 2017 stood at RM163 million.

The group's current outstanding orderbook amounted to RM3.2 billion and year-to-date win for year 2017 contract totalled to RM1.4 billion.

"I would like to take this opportunity to thank the shareholders for their confidence and continuing support in Kerjaya Prospek.

"I look forward to the future as we continue to work hard to bring the company to greater heights," Kerjaya Prospek executive chairman Datuk Tee Eng Ho said in a statement.
The proposed bonus issues are expected to be completed by the first quarter of this year.
At noon market close, Kerjaya Prospek shares were up 6 sen or 1.5% to RM4.09, with 191,100 shares changing hands.

[theedgemarkets]