By Zunaira Saieed
KUALA LUMPUR: Property developer, Matrix Concepts Holdings Bhd has proposed a corporate exercise involving a bonus issue and also free warrants to enhance its share capital base and encourage retail participation.
It said on Wednesday the bonus issue would be on a one-for-six shares basis and a free warrant on a one-for-six shares basis also.
Matrix Concepts chairman Datuk Mohamad Haslah said the exercise would improve the share liquidity of the company.
The free warrants, he said, would reward existing shareholders, allowing them to increase their equity as well as gaining more exposure to the company’s future growth.
Matrix Concepts said the corporate exercise would involve the issuance up to 77.8 million new RM1 shares and up to 77.8 million five-year warrants.
“The maximum scenario is dependent on the exercise of outstanding options under the group’s employee share option scheme,” Matrix Concepts said.
The bonus shares would increase the company’s share capital up to RM544.8mil comprising of 544.8 million shares of RM1 par compared to 461.4 million shares currently.
Meanwhile, the five-year warrants would increase the share capital by an additional RM77.8mil, assuming full exercise of warrants during the five-year period.
Haslah said the increased capital via the exercise of warrants would translate into working capital to finance on-going and future projects of the group.
The exercise price of the warrants and the expected proceeds will be determined at a later date.
Kenanga Investment Bank Bhd is the adviser for the corporate exercise.