KUALA LUMPUR (Feb 7): Electronic manufacturing services firm EG Industries Bhd (KL:EG), whose share price hit a record high last month, on Friday proposed a one-for-one bonus issue.

The bonus issue involves 692.9 million new shares, the company said in an exchange filing. The entitlement date will be determined later after all relevant approvals for the bonus issues have been obtained, EG Industries said.

The bonus issue will allow shareholders to have greater participation in its equity, while maintaining their percentage of equity interest held, and also possibly encourage trading liquidity and marketability of the shares, EG Industries said.

The theoretical ex-bonus share price would be RM1.25, based on the five-day volume-weighted average price of the shares up to Jan 31, 2025, EG Industries noted. The proposed bonus issue is expected to be completed by the second quarter of 2025, it said.

For the first quarter ended Sept 30, 2024 (1QFY2025), EG Industries’ net profit more than tripled year-on-year to RM35.77 million, its highest on record. Quarterly revenue rose a little over 30% to RM338.56 million from a year earlier.

EG Industries was also upbeat about its outlook driven by robust demand for advanced high-speed optical modules and artificial intelligence modules.

EG Industries’ share price closed unchanged at RM2.50 on Friday, valuing the company at RM1.17 billion, before the bonus share announcement.

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