KUALA LUMPUR (June 3): Computer Forms (Malaysia) Bhd (CFM) hit limit up this morning after the company proposed a bonus issue.
The counter, which was the top gainer this morning, surged 84 sen or 30% to a record high of RM3.64.
It saw 45,300 shares traded.
Yesterday, the group proposed a bonus issue of up to 164 million new shares on the basis of four bonus shares for every one existing share.
It said the bonus issue will provide shareholders with greater participation in the equity of the company.
It will also improve the trading liquidity of CFM shares and attract greater participation from a broader range of investors, it added.
According to CFM, the theoretical ex-bonus share price of its shares is expected to be 50 sen, based on the lowest daily volume-weighted average market price of its shares during the past three-month period, which is RM2.50.
The number of the group’s shares is expected to increase to 205 million after the bonus issue from 41 million currently.
CFM said the bonus issue is expected to be completed by the third quarter of 2021 (3Q21).
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