KUALA LUMPUR (July 10): Construction outfit Haily Group Bhd (KL:HAILY) said it plans to reward its shareholders with a bonus issue of one new share for every share held.

This will be followed by a free warrant issue on the basis of one warrant for every two shares held, the group said in a bourse filing. The warrants will have a tenure of three years.

The entitlement date for the bonus issue will be determined later, the group said, adding that the warrants' entitlement date will be announced after the completion of the bonus issue

As at June 25, Haily had an issued share capital of RM69.48 million comprising 196.15 million shares.

For illustrative purposes, based on the five-day volume weighted average market price of Haily shares of 60.41 sen on July 9, the theoretical ex-bonus share price will be about 30.21 sen.

Meanwhile, the exercise price of warrants is assumed to be 22 sen each, representing a discount of 27.16% to the theoretical ex-bonus price of 30.21 sen. Based on this exercise price, and assuming full exercise, Haily expects to raise gross proceeds of RM43.15 million, which will be allocated for its working capital.

In June, Haily completed a private placement exercise involving up to 17.83 million new shares — representing not more than 10% of the total number of issued shares — raising gross proceeds of about RM8.22 million.

For the first quarter ended March 31, 2024, Haily’s net profit fell 17.57% year-on-year to RM1.53 million due to lower profit margins and higher expenses. Revenue, meanwhile, rose 6.03% to RM72.11 million, contributed by building construction projects, including the Mutiara Maju, Taman Impian Emas, and Bandar Putra projects.

Shares of Haily closed up one sen or 1.68% at 60.5 sen on Wednesday, giving it a market capitalisation of RM117.68 million.