KUALA LUMPUR (Nov 15): Vegetable supplier Farm Price Holdings Bhd (KL:FPHB) has scrapped its recently announced plan for a one-for-two bonus issue of warrants, saying it will revisit the plan next year instead.

“After further deliberation, the company has decided not to proceed with the proposed bonus issue of warrants and will revisit the same in the second quarter of 2025,” Farm Price said in a bourse filing on Friday, without explaining further.

The initial proposal, which it announced just last week on Nov 7 to reward shareholders, involved issuing up to 225 million warrants on the basis of one warrant for every two shares held by shareholders. The exercise price was set at 50 sen per warrant, a 6.94% discount to the five-day volume-weighted average price of Farm Price shares of 53.73 sen as of Nov 6.

If all 225 million warrants were exercised, the company’s issued shares would increase to 675 million, with a potential market value of RM152.95 million.

Since the announcement of the proposed bonus issue, Farm Price's share price has risen 9.43% or five sen from 53 sen to close at 58 sen on Friday.  

Just a day earlier, the group also announced a plan to expand its distribution reach to Sabah by taking up a 55% stake in Kota Kinabalu-based Fresh Story Sdn Bhd.

Farm Price recently reported a net profit of RM1.63 million on the back of a revenue of RM30.55 million for its second quarter ended June 30, 2024. There were no comparative figures as this is the company's second interim financial report on Bursa, following its listing on May 14.

At its closing price of 58 sen on Friday, up three sen or 5.45% from a day earlier, Farm Price has a market capitalisation of RM258.58 million. The stock has more than doubled from its initial public offering price of 24 sen.