KUALA LUMPUR (April 25): Mr DIY Group (M) Bhd has proposed a bonus issue of up to 3.14 billion shares on the basis of one bonus share for every two shares held.

The entitlement dates for the bonus issues will be determined later, the home improvement retail chain said in a filing with Bursa Malaysia.

“The board has considered that the proposed bonus issue is an appropriate avenue to reward shareholders for their continuous support of Mr DIY and its subsidiaries,” the group said.

Mr DIY said its share price adjusted for the bonus issue will not be less than 50 sen, based on the daily volume weighted average market price (VWAMP) for the three-month period before the application date.

Based on the five-day VWAMP and the three-month VWAMP of Mr DIY shares during the three months up to April 22, the theoretical ex-bonus price for the group’s shares is expected to be between RM2.32 and RM2.37.

The bonus issue is expected to be completed by the second quarter of 2022.

At Monday (April 25)’s market close, Mr DIY shares were three sen or 0.9% lower at RM3.44, valuing the group at RM21.6 billion.