KUALA LUMPUR (Dec 3): T7 Global Bhd (KL:T7GLOBAL) has proposed to undertake a bonus issue of up to 197.35 million warrants, on the basis of one warrant for every five shares held by shareholders.
The entitlement date and the exercise price of the warrants will be announced later, the company said in an exchange filing on Tuesday.
"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 T7 Global.
However, it added that the warrants will potentially provide the company with additional working capital as and when the warrants are exercised.
The group intends to fix the exercise price of the warrants at a discount or premium range of up to 10% to the theoretical ex-all price of T7 Global shares, based on the five-day volume weighted average market price (VWAMP) up to and including the price fixing date.
Assuming the illustrative exercise price of the warrants at 55 sen — which represents an 8.25% premium to the five-day VWAMP of T7 Global shares of 50.81 sen per share as at Nov 28 — the company is expected to raise between RM91.25 million under the minimum scenario and RM108.54 million under the maximum scenario.
UOB Kay Hian Securities (M) Sdn Bhd has been appointed as the principal adviser for the bonus issue, which is expected to be completed in the first quarter of 2025.
At Tuesday’s noon closing, T7 Global shares traded unchanged at 50 sen, valuing the company at RM423.45 million. Year to date, the stock has risen 13.6%.