KUALA LUMPUR (April 14): In less than two months after it announced the proposal of a bonus issue of warrants, share placement and share issuance scheme (SIS), CN Asia Corp Bhd today proposed a three-for-two bonus issue of shares.
Upon completion of the proposed bonus issue of shares, share placement and SIS, the company’s share base will be enlarged to 260.49 million shares from 54.91 million shares as at March 31, it said in a filing today.
CN Asia said it expects to issue up to 156.3 million new shares based on the company’s enlarged total number of issued shares of 104.2 million, assuming all warrants and SIS options proposed on Feb 23 are fully granted and exercised.
On Feb 23, the company proposed private placements of up to 10% of the group’s total number of issued shares, bonus issue of warrants on the basis of one warrant for every two existing shares and SIS of up to 15% of its total number of issued shares.
The company said the proposed bonus issues aim to improve trading liquidity and marketability of the company shares and to attract greater participation by investors.
According to the company, its board has confirmed that the share price adjusted for the proposed bonus issue of shares is not less than 50 sen.
For illustration purposes, based on the five-day volume weighted average price of CN Asia shares up to and including April 13 of RM1.2769, the theoretical adjusted reference price of the bonus shares will be 51.08 sen.
The proposals are expected to be completed in the second quarter of 2021.
The stock closed down two sen or 1.31% to RM1.51, giving it a market capitalisation of RM83 billion. There were 228,200 shares traded.
Year-to-date, the stock has fallen 36% from Jan 4, 2021. Nonetheless, it is still trading significantly higher compared to a year ago when it was traded below 40 sen.
