KUALA LUMPUR (May 11): Integrated poultry producer CAB Cakaran Corp Bhd has proposed to undertake a share split and bonus issue to enhance the marketability and trading liquidity of its shares.

The share split will involve subdivision of every two existing shares into five split shares, and a bonus issue of up to 138.65 million new split shares to be credited as fully paid-up with 1 bonus share for every four split shares.

The proposals will take place based on an entitlement date to be determined later, it said in a filing with Bursa Malaysia today. 

Furthermore, the proposed share split would result in an adjustment to the market price of CAB shares, with a more affordable entry price, potentially appealing to a wider group of public shareholders and/or investors, to participate in the growth of the company.

Under the minimum and maximum scenario, assuming full conversion from the existing warrants, the enlarged issued and paid-up share capital of the company will be increased from 182.41 million shares to 569.36 million and 693.25 million, respectively.

On the other hand, after a deliberation by the board of CAB Cakaran, the proposed bonus issue is deemed the most appropriate avenue to reward existing shareholders of the company, and at the same time enhance the company's capital base.

Barring any unforeseen circumstances and subject to obtaining approvals from relevant authorities, the company expects these proposals to be completed by the third quarter of 2017. 

The proposals are also subject to approval of CAB Cakaran shareholders at an extraordinary general meeting to be convened.

Shares of CAB Cakaran closed 2.3% or 7 sen higher at RM3.10 today, for a market capitalisation of RM565.48 million. Year-to-date, its share price has more than doubled.