KUALA LUMPUR (April 27): Shares in data management solutions firm Kronologi Asia Bhd rose 5.13% in active trade at mid-morning on Thursday (April 27) after the company proposed a one-for-five bonus issue of shares, as well as a bonus issue of one warrant for every five existing shares.

At the market close, however, Kronologi shed five sen to 58 sen with 3.6 million shares traded, for a market capitalisation of RM421.46 million.

In a Bursa Malaysia filing on Wednesday, Kronologi said the proposed bonus issue of shares entails the issuance of up to 148.06 million bonus shares. The entitlement date will be determined and announced later.

The bonus issue is expected to expand Kronologi’s share base to 888.41 million shares.

Kronologi’s board is of the view that the bonus issue of shares will enable its shareholders to have greater participation in the equity of the company, while maintaining their percentage of equity interest.

It is also expected to enhance the marketability and trading liquidity of Kronologi shares on the ACE Market of Bursa Malaysia.

“The proposed bonus issue of shares is not expected to have any effect on the earnings of Kronologi for the financial year ending Jan 31, 2024 (FY2024).

"However, there will be a corresponding dilution in the earnings per share of Kronologi for FY2024 as a result of the increase in the number of Kronologi shares in issue arising from the proposed bonus issue of shares," it said.

Meanwhile, Kronologi is planning for a bonus issue of up to 148.06 million warrants on a date to be announced later. The exercise price of the warrants will also be determined later.

Note that the bonus shares will not be entitled to the warrants.

Kronologi said the bonus issue of warrants will enable its shareholders to own convertible securities in the company, which are tradable on Bursa, without incurring any cost.

Ta Securities Holdings Bhd has been appointed as the adviser for the corporate exercises.