VS (6963) V.S INDUSTRY BHD proposes 1-for-1 bonus issue with free warrants
KUALA LUMPUR (Feb 25): Electronics manufacturing services provider VS Industry Bhd plans to undertake a bonus issue with free warrants, on the basis of one bonus share for every one VS share (1-for-1) held at an entitlement date to be fixed, followed by one free warrant for every five VS shares (1-for-5) held.
The proposed bonus issue, said VS Industry managing director Datuk SY Gan in a statement today, is an alternative avenue for the group to reward its shareholders, aside from dividends, and will improve the marketability and trading liquidity of the group's shares.
As for the free warrants, which will be issued after the bonus shares, Gan said they could potentially provide additional funds to the group for working capital, and to fund potential investment and repay bank borrowings, when the warrants are exercised.
The proposals, which are subject to shareholders' approval, could involve the issuance of up to 1.92 billion bonus shares, and up to 768.2 million warrants.
While the exercise price of the warrants is yet to be fixed, the group said the warrants could raise up to RM1.15 billion, based on an illustrative exercise price of RM1.50 per warrant.
Shares of VS Industry closed 16 sen or 5.56% higher at RM3.04 today, valuing the group at RM5.75 billion.