Perak Transit announces one-for-two bonus issue

Friday 17 May 2024

KUALA LUMPUR (Jan 5): Perak Transit Bhd has proposed to undertake a bonus issue of up to 433.64 million new shares on the basis of one bonus share for every two existing ordinary shares.

As at Jan 2, the group's share base consists of 742.13 million shares and 125.16 million outstanding warrants, according to its stock exchange filing on Friday.

Based on Perak Transit’s share price of RM1.14 on Jan 2, the theoretical ex-bonus share prices would be 76 sen after the corporate exercise.

“The proposed bonus issue serves to reward the existing shareholders for their continued support to Perak Transit and its subsidiaries by enabling them to have greater participation in the equity of the company in terms of the number of Perak Transit shares held, whilst maintaining their percentage of equity interest in the company,” said the group.

“The increased number of Perak Transit shares in issue upon completion of the proposed bonus issue may encourage trading liquidity of Perak Transit shares on the Main Market of Bursa Securities,” it added.

Perak Transit’s largest shareholder is founder and managing director Datuk Seri Cheong Kong Fitt, who controls a 29.6% stake via 16.65% of direct shareholdings and 12.99% of indirect shareholdings through his wife Datin Seri Lim Sow Keng and CBS Link Sdn Bhd.

Businessman Datuk Eddie Ong Choo Meng of Hextar-series stocks is the second largest shareholder with a 9.9% stake in Perak Transit, followed by 6.2% shareholdings owned by Tan Sri Danny Tan Chee Sing, executive vice chairman of Tropicana Corp Bhd.

The proposed bonus issue, which requires shareholders’ approval, is estimated to be completed by the first quarter this year, with AmInvestment Bank appointed as principal adviser for the exercise.

Shares of Perak Transit closed unchanged at RM1.15 on Friday, giving it a market capitalisation of RM853.45 million.

Edited ByLam Jian Wyn

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