KUALA LUMPUR (March 27): EVD Bhd will undertake a special Bumiputera issue of 132.32 million new shares in order to comply with the Bumiputera equity condition set by regulators.
According to a filing with Bursa Malaysia on Monday (March 27), EVD said it was part of its listing conditions to allocate 12.5% of its enlarged issued and paid-up share capital to Bumiputera investors recognised by the Ministry of International Trade and Industry (Miti) after the company achieved profit, or three years after the implementation of the regularisation plan, whichever is earlier.
The issued share capital of EVD is RM53.83 million comprising 407.14 million shares, as well as some 2.33 billion redeemable convertible preference shares (RCPS) and 86.47 million warrants 2022/2029 of EVD.
Meanwhile, EVD said even if any employees shares option scheme (ESOS) is granted, the company will ensure that the vesting date for such ESOS options will be after the completion of the proposed special issue and hence, will not be considered for the purpose of subsequent illustrations.
It said the proposed special issue would entail the issuance of up to 132.32 million special issue shares, which in aggregate with the EVD shares pursuant to the Miti recognition, would represent about 12.50% of the total enlarged number of the issued shares.
Based on the latest unaudited consolidated financial statements of EVD for the financial year ended Dec 31, 2022, EVD had recorded a profit after tax of RM7.44 million in FY2022.
“Hence, EVD proposes to undertake the proposed special issue in order to comply with the Bumiputera equity condition by Dec 31, 2023,” the company said.
The issue price will be determined at a later date of not more than 10% to the five day volume weighted average market price (VWAMP) of EVD shares immediately prior to the price-fixing date.
Shares of EVD closed 5.56% or one sen lower to 17 sen per share on Monday, giving the company a market capitalisation of RM69.35 million.
This article has been updated for accuracy.