KUALA LUMPUR (May 11): Manufacturer of paper based products and plastic products, UPA Corp Bhd has proposed to undertake a bonus issue of up to 159.16 million shares on the basis of two bonus shares for every one existing share held, on an entitlement date to be determined later.

As at the latest practicable date on May 2, the issued share capital of UPA is RM79.58 million with 79.58 million shares, including 2.37 million treasury shares.

Upon completion of the proposed bonus issue, UPA's share capital would rise to 238.75 million shares worth RM79.58 million, it wrote in a filing with Bursa Malaysia on Thursday (May 11).

The group said the proposed bonus issue will enable UPA’s existing shareholders to have greater participation in the company’s equity in terms of the number of UPA shares held, while maintaining their percentage of equity interest in UPA without incurring any cost.

“It will result in lower trading price of UPA shares, which serves to attract a wider group of investors. It is expected to enhance the trading liquidity of UPA shares on the main market of Bursa Securities,” the group added.

UPA expects the proposed bonus issue to be completed by the third quarter of 2023.

Public Investment Bank Bhd has been appointed as the principal adviser to UPA for the proposed exercise.

UPA’s shares closed 0.87% or two sen higher on Thursday at RM2.31 apiece, giving the company a market capitalisation of RM183.83 million. The counter has climbed 11.59% in the past six months.