KUALA LUMPUR (Jan 16): Property developer Tanco Holdings Bhd, whose share price surged to a 27-year high of RM2.13 on Thursday, has proposed a bonus issue of up to 3.85 billion new shares — on the basis of seven bonus shares for every five Tanco shares held — to reward shareholders.

The entitlement date for the bonus issue will be announced later, Tanco said in a filing with Bursa Malaysia on Tuesday.
 
As of Jan 8, the company has an issued share capital of RM243.19 million, comprising 2.20 billion shares. It also has 551.97 million outstanding warrants expiring on Aug 25 this year that can be converted into ordinary shares at an exercise price of 31 sen each.

The proposed bonus issue would raise Tanco's share base to up to 6.6 billion shares, assuming the full exercise of its outstanding warrants.

Tanco shares would theoretically be adjusted to 51 sen per share after the bonus issuance, according to the company's estimates.

The bonus issue is expected to be completed by the first quarter of 2025.

Tanco shares closed at RM2.13 on Thursday, up three sen or 1.43%, giving it a market capitalisation of RM4.68 billion. Its share price has more than tripled from 66 sen a year ago.