KUALA LUMPUR: Property developer Matrix Concepts Holdings Bhd has proposed a bonus issue together with free new warrants, on the basis of one bonus share and one free warrant for every six Matrix Concepts shares held on an entitlement date to be determined later.
In a statement yesterday, Matrix Concepts said the exercise would see an issuance of up to 77.8 million new ordinary shares of RM1 par 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.
The price of the warrants and the expected proceeds will be determined at a later date.
Matrix said the bonus shares will effectively increase Matrix Concepts’ share capital up to a maximum of RM544.8mil, comprising 544.8 million shares of RM1 par, from 461.4 million shares currently.
The five-year warrants are expected to eventually increase the share capital by an additional RM77.8mil, assuming full exercise of the warrants during the five-year tenure.
“The corporate exercise aims to increase our share capital base, as well as encourage heightened retail participation, hence improving share liquidity.
“Also, the free warrants are to reward all existing shareholders, allowing them to increase their equity in the group and gain greater exposure to our future growth,” chairman Datuk Mohamad Haslah Mohamad Amin said.
Furthermore, he said the increased capital through the exercise of warrants over the next five years would translate into additional working capital to finance ongoing and future projects of the group.
The corporate exercise is subject to shareholders’ approval during an extraordinary general meeting to be convened later.
Kenanga Investment Bank Bhd is the adviser for the corporate exercise.