KUALA LUMPUR (Oct 22): Teo Seng Capital Bhd (KL:TEOSENG), whose share price soared to an all-time high of RM2.60 on Monday, proposes a one-for-one bonus issue of up to 300 million shares to reward shareholders.

As of Sept 30, the egg producer has an issued share capital of RM60 million comprising 300 million shares.

In a Bursa Malaysia filing, Teo Seng said its share price adjusted for the bonus issue must not be less than 50 sen, based on the daily volume-weighted average market price (VWAMP) for the three-month period before the application date, to comply with Bursa's listing requirements.

The theoretical ex-bonus price for the group's shares is expected to be between RM0.8641 and RM1.1615, based on the lowest daily VWAMP during the three-month period of RM1.7281 and the five-day VWAMP up to Sept 30 of RM2.323.

Teo Seng’s largest shareholder is Leong Hup International Bhd (KL:LHI), which held a 54.68% stake. Leong Hup, in turn is controlled by the Lau family via Emerging Glory Sdn Bhd, which held a 52.8% stake in the listed poultry company.

The proposed bonus issue is expected to be completed by the fourth quarter of 2024.

Improving earnings prospects as a result of lower feed costs, which make up a big portion of costs, lifted the stock to a new peak on Monday.

The counter dropped one sen or 0.4% to close at RM2.59 on Tuesday, valuing the group at RM777.02 million.