KUALA LUMPUR (Jan 11): NetX Holdings Bhd has proposed a bonus issue of 468.98 million free warrants on the basis of one warrant for every two shares held on an entitlement date to be determined later.

In a bourse filing on Thursday, the software and systems developer said the illustrative exercise price is eight sen per warrant.

This, it said, represents a discount of about 25.7% to the theoretical ex-all price (TEAP) of NetX shares of 10.77 sen, calculated based on the five-day volume-weighted average market price of NetX shares up to the latest practicable date or LPD (Jan 2) of RM0.1215.

Based on the exercise price and in the event the warrants are fully exercised, NetX is expected to raise gross proceeds of about RM37.52 million for working capital purposes.

As at Jan 2,  NetX's issued share capital was RM212.03 million comprising 937.95 million shares.

Assuming full exercise of the warrants, the company’s enlarged issued share capital would be RM249.55 million comprising 1.41 billion, said NetX.

The company said the exercise is expected to be completed by the second quarter of 2024.

TA Securities is the principal adviser for the proposed bonus issue of warrants.

Shares of NetX finished unchanged at 11.5 sen on Thursday, valuing the company with a market capitalisation of RM108 million.