Thursday 29 Feb 2024
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KUALA LUMPUR (Nov 23): Underground utilities and substation engineering specialist MN Holdings Bhd (MNHB) has proposed a bonus issue of 204.38 million free warrants on the basis of one warrant for every two existing shares held to reward existing shareholders.

It said the entitlement date of the warrants will be determined and announced at a later date.

In a filing with Bursa Malaysia on Wednesday (Nov 23), ACE Market-listed MNHB said the exercise price of the warrants has been fixed at 20 sen apiece, which represents a discount of 8.26% to the five-day volume weighted average market price of MNHB shares of 21.8 sen on Nov 22.

"The gross proceeds to be raised upon full exercise of the warrants based on the warrant exercise price is up to RM40.88 million. Such proceeds will be utilised for future working capital requirements," it added.

As of Nov 17, the group's total issued share capital stood at RM49.35 million comprising 408.75 million shares. Upon full exercise of the warrants, its share capital will increase to RM90.23 million comprising 613.13 million shares.

The group is also proposing to set up an employees' share option scheme (ESOS) involving up to 30% of its total issued shares to recognise the contributions of its employees and directors.

The proposed bonus issue of warrants is not conditional upon the proposed ESOS. M&A Securities Sdn Bhd has been appointed as the principal adviser to MNHB in relation to the two proposals.

Subject to all required approvals being obtained, the proposals are expected to be completed by the first quarter of 2023, said MNHB.

MNHB shares closed unchanged at 22 sen on Wednesday, bringing it a market capitalisation of RM89.92 million.

Edited ByKang Siew Li
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