Bonus issue and issuance of free warrants also OK’ed
KUCHING: Serba Dinamik Holdings Bhd (SDHB) has obtained the approval of Bursa Securities for its proposed share split, bonus issue and issuance of free warrants.
The company has proposed a share split involving a subdivision of every two existing ordinary shares into three shares (subdivided shares).
The proposed bonus issue of 881.1 million ordinary shares is on the basis of two bonus shares for every five subdivided shares while the proposed issuance of 881.8 million free warrants is on the basis of two warrants for every five subdivided shares.
Bursa Securities approved the listing and quotation of up to 881.1 million new subdivided shares to be issued arising from the exercise of the warrants and listing of up to 881.1 million new subdivided shares to be issued pursuant to the proposed bonus issue of shares, SDHB said in a filing with the local bourse.
The approvals were given on several conditions, including SDHB and RHB Investment Bank (principal adviser to the proposals) to inform Bursa Securities upon the completion of the proposed bonus issue of shares and free warrants.
SDHB is also required to furnish Bursa Securities on a quarterly basis a summary of the total number of shares listed pursuant to the exercise of the warrants at the end of each quarter, together with a detailed computation of listing fees payable.
According to SDHB, the bonus shares would be issued as fully paid, at no consideration and without capitalisation on the
company’s reserves.
The actual exercise price of the warrants has not be determined though for illustration purposes, the exercise price is assumed at RM2.56 per SDHB share, being a premium of about 30 percent over the theoretical ex-all price of RM1.97 calculated on the closing price of SDHB shares of RM4.15 on the date of announcement of the proposal.
Assuming that all warrant holders exercise their warrants at RM2.56 per share, SDHB will receive a maximum proceeds of RM2,255,616,000.
“Such proceeds to be raised, as and when the warrants are exercised, shall be utilised for (i) working capital of the group, which may include payment of trade and other payables, employee costs and marketing and administrative expenses, and (ii) repayment of bank borrowings,” said the company.
As at December 31, 2018, SDHB has total borrowings of about RM1.71 billion or gross gearing of 0.82 times.
The company said the proposed bonus issue and free warrants are being implemented to reward the existing shareholders for their loyalty and continuous support to the group.
The proposals are expected to be completed in the current quarter.
Meanwhile, Bursa Securities has also approved the listing and quotation of 17,932,200 new ordinary shares to be issued by Binasat Communications Bhd to Bumiputera investors pursuant to a proposed special issue.
The number of shares under the special issue, which is to comply with the Bumiputera equity requirement, represents about 6.9 percent of the company’s issued share capital of 260 million. The issue price of the new ordinary shares has not be fixed.
However, based on an illustrative issue price of 26 sen per Binasat share, the company said the gross proceeds to be raised from the proposed special issue is
RM4.66 million.
From the proceeds, RM4.462 million will be utilised for working capital requirements of the group and RM200,000 for the estimated expenses of the special issue.
The proposed special issue is expected to be completed in the current quarter, said Binasat, which is listed on the ACE Market.
