Saturday 23 Nov 2024
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KUALA LUMPUR (Nov 7): Vegetable supplier Farm Price Holdings Bhd (KL:FPHB), which was listed on the ACE Market of Bursa Malaysia on May 14, has proposed to undertake a bonus issue of up to 225 million warrants on the basis of one warrant for every two shares held by shareholders.

The entitlement date will be announced later, the company said in an exchange filing on Thursday.

"The proposed bonus warrants will not raise any immediate funds upon its issuance as the warrants will be issued at no cost by the company to the entitled shareholders," said Farm Price.

However, it added that the warrants will potentially provide the company with additional working capital as and when the warrants are exercised.

The exercise price of the warrants is fixed at 50 sen each, which represents a 6.94% discount to the five-day volume-weighted average market price of Farm Price shares of 53.73 sen as at Nov 6.

Assuming all of the 225 million warrants are exercised at that price, Farm Price’s enlarged issued shares will increase to 675 million, worth RM152.95 million, the company noted.

Alliance Islamic Bank Bhd has been appointed as the principal adviser for the bonus issue, which is expected to be completed in the first quarter of 2025.

Farm Price shares closed down 0.5 sen or 0.9% at 53 sen on Thursday, giving the company a market capitalisation of RM238.5 million. The stock has risen 120% from its listing price of 24 sen.

Edited ByS Kanagaraju
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