KUALA LUMPUR (Dec 8): Central Global Bhd has proposed to split each of its shares into four shares in a move to reward its shareholders and improve the trading liquidity of the shares.

Following the share split, the crepe paper masking tape manufacturer also plans to issue up to 275.17 million free warrants (Warrants B) on the basis of one warrant for every three split shares held.  

The share split and issuance of free warrants will take place on an entitlement date to be determined later, and is expected to be completed by the second quarter of 2024, the group said in a filing with Bursa Malaysia on Friday.

Central Global said that as at Nov 30, the group’s issued share capital stood at approximately RM139.44 million, comprising 178.97 million shares.

In addition, the group has an outstanding 27.26 million units of Warrants A and an outstanding 148.64 million share awards which were granted but not yet exercised under the share grant scheme to the group's employees and directors.

Assuming all of its outstanding Warrants A and share awards are exercised into new shares before the split, the group will have  825.5 million issued shares after the completion of the proposed share split.

Based on this assumption, a total of 275.17 million Warrants B will be issued. If they are all exercised into new shares, this will result in a total of 1.1 billion issued shares in the company.

In this scenario, Central Global is expected to raise up to RM187.11 million from the exercise of Warrants B, which it intends to utilise for the working capital of the group such as payment to trade creditors and operating expenses.