Sunday 15 Dec 2024
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KUALA LUMPUR (March 13): Mattress manufacturer Lee Swee Kiat Group Bhd (LSK) said on Wednesday it is proposing a bonus issue of up to 83.91 million new shares.

Shareholders will get one bonus share for two existing shares held, LSK said in an exchange filing. LSK has an issued share capital of RM16.78 million comprising 161.82 million shares, including 6.46 million treasury shares as of March 8.

The entitlement date for the corporate exercise will be determined at a later date upon receipt of relevant approvals, LSK said.

The planned bonus issue comes at a time of record profits at the company that makes natural latex bedding and spring mattresses. The company reported that its net profit rose 26% to RM13.65 million for the 12 months ended Dec 31, 2023.

The proposal is the "most appropriate avenue to reward its shareholders" by raising their equity participation in the company and maintaining their percentage equity shareholding without incurring any cost, among others.  

The proposed bonus issue of shares will not have any effects on the substantial shareholdings of the major shareholders of LSK though the number of shares held by the substantial shareholders will increase proportionately, LSK noted.

The proposed bonus issue, which requires shareholders' approval, is estimated to be completed by the second quarter of this year, the company added.

RHB Investment Bank has been appointed as the principal adviser for the issuance.

Shares of LSK closed up two sen or 1.9% at RM1.06 on Wednesday, giving it a market capitalisation of RM177.9 million.

Edited ByJason Ng
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