KUALA LUMPUR (Oct 8): Office furniture maker Euro Holdings Bhd, whose share price has jumped over 11 times year-to-date, has proposed a bonus share issuance to reward its shareholders, on the basis of two bonus shares for every one existing share held at an entitlement date to be fixed.

The proposed exercise will involve the issuance of 534.6 million bonus shares, the company said in a stock exchange filing.

The issuance is also aimed at improving the trading liquidity and marketability of the company's shares, while increasing its capital base. It will also result in the company's shares being more affordable to appeal to a wider group of public shareholders and investors, Euro Holdings said.

Based on the five-day volume weighted average price of Euro Holdings shares up to Oct 6 of RM1.8743 per share, the theoretical ex-bonus share price is approximately 62.5 sen.

The company's share capital will increase to 801.9 million shares following the bonus issuance, from 267.3 million shares.

Euro Holdings' shares, which were trading at just 17 sen apiece at end-2019, closed unchanged today at RM1.93, valuing the company at RM515.89 million.