KUALA LUMPUR (June 14): Sunway Bhd has proposed to undertake a bonus issue of up to 2.8 billion new shares in the company on the basis of four bonus shares for every three existing Sunway shares held, on an entitlement date to be determined later.

It also proposes a bonus issue of up to 631 million free warrants in Sunway, on the basis of three warrants for every 10 existing Sunway shares held on the same entitlement date as the proposed bonus issue.

“The proposed issuances are aimed at rewarding shareholders of the company for their confidence in Sunway Group and continuing support by giving them additional participation in the equity of the company,” Sunway said in a filing with Bursa Malaysia today.

The proposed issuances is also expected to enhance the marketability and trading liquidity of Sunway’s shares on Bursa Malaysia, by way of a larger capital base, the group said.

The proposed bonus issue of shares will not raise any funds, while the amount of future proceeds from the proposed bonus issue of warrants would depend upon the exercise price and actual number of warrants exercised during its tenure.

“Assuming full exercise of the warrants at the indicative exercise price of RM1.53 per warrant, the group could potentially raise the maximum gross proceeds of RM965.44 million,” Sunway said, adding the proceeds would be utilised for future working capital, including trade payments and other payables, staff costs and other operating expenses.

Shares in Sunway closed up 12 sen or 3.32% to a one-year high of RM3.73 per share today, on some 5.18 million shares crossed. The conglomerate had a market capitalisation of RM 7.74 billion.