KUALA LUMPUR (May 2): Farm Price Holdings Bhd (KL:FPHB) 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 and the exercise price of the warrants will be announced later, the company said in an exchange filing on Friday.

Farm Price intends to fix the exercise price of the warrants at 40 sen, which is a discount of 8.93% to the five-day volume weighted average market price of the company's share price of 43.92 sen as at April 30.

The 40 sen exercise price, at the same time, represents a discount of 6.13% or 2.61 sen to the theoretical ex-bonus share price of Farm Price's price of 42.61 sen.

At the price of 40 sen, the company is expected to raise up to RM90 million if the warrants are fully exercised. These proceeds will be fully earmarked for working capital.

Farm Price said its managing director Dr Tiong Lee Chian and executive director Liew Tsuey Er, who collectively hold a direct stake of 10.43% and an indirect stake of 60% in the company, will see their shareholdings remain unchanged following the bonus issue and the full exercise of the warrants.

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

On Friday, Farm Price shares closed up 3.5 sen or 7.9% at 48 sen, valuing the company at RM216 million. Year to date, the stock has declined 4%.