KUALA LUMPUR, Malaysia (July 6): LB Aluminium Bhd has proposed a bonus issue of new ordinary shares in which three bonus shares will be issued for every four existing shares in the firm. The exercise will result in the issuing of up to 186.36 million new ordinary shares in the company, according to a market filing.
The proposed bonus issue, according to LB Aluminium, is intended to reward the company’s shareholders by allowing them to participate more fully in the company’s equity by increasing the number of shares held with no financial outlay while maintaining their percentage of ownership interest.
It also aims to improve the trading liquidity and marketability of LB Aluminium shares while increasing the company’s capital base; and make bonus shares more affordable in order to appeal to a wider group of public shareholders and investors, potentially expanding the company’s shareholder base, according to the statement.
The theoretical adjusted reference price of the bonus shares upon completion of the planned bonus issuance, according to LB Aluminium, is estimated to be 55.85 sen.
The group’s total issued share capital will increase to 434.85 million from 248.49 million after the proposed bonus issue is completed.
The proposed bonus issuance is projected to be completed by the third quarter of 2021, barring any unforeseen events.
Today, LB Aluminium increased four sen, or 4.23 percent, to 98.5 sen, valuing the company at RM234.81 million./n
