Sunday 14 Apr 2024
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KUALA LUMPUR (Feb 28): Agrochemical company Hextar Global Bhd has proposed to undertake an issue of up to 2.63 billion bonus shares on the basis of two bonus shares for every one existing Hextar share held, on an entitlement date to be determined later.

As at Feb 15, the issued share capital of Hextar Global is RM633.88 million, comprising 1.31 billion shares (including 27.33 million treasury shares).

In a filing with Bursa Malaysia on Tuesday (Feb 28), Hextar Global said the treasury shares would be entitled to the bonus shares and such bonus shares will be treated as treasury shares held by the company at the time the bonus shares are allotted.

It added that the proposed exercise would enable the company to provide shareholders with greater participation in the equity of the company, and improve the trading liquidity of Hextar shares on Bursa Malaysia.

“The proposed bonus issue of shares is not expected to have any material effect on the group’s earnings for the financial year ending Dec 31, 2023. However, the earnings per share of Hextar will be proportionately diluted as a result of the increase in the number of Hextar shares arising from the exercise,” the filing said.

Subject to all relevant approvals being obtained, the proposed bonus issue of shares is expected to be completed by the third quarter of 2023.

TA Securities Holdings Bhd has been appointed by the company to act as the principal adviser for the proposed exercise.

Hextar Global shares closed unchanged at RM2.23 on Tuesday, giving it a market capitalisation of RM2.93 billion. Its share price has risen 39.4% over the past year.

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