KUALA LUMPUR (July 28): Berjaya Food Bhd (KL:BJFOOD) has proposed to undertake a bonus issue of up to 885.91 million warrants, on the basis of one warrant for every two shares held.
In a bourse filing on Monday, the franchise operator of Starbucks and Kenny Rogers' Roasters said the entitlement date for the bonus issue will be announced later, pending necessary approvals.
The warrants are exercisable at any time for a tenure of 10 years from the date of issuance, the company said.
For illustrative purposes, the company has assumed an exercise price of 30 sen per warrant, representing a premium of 7.45% to the five-day volume weighted average price of 27.92 sen up to July 24.
Assuming full exercise of the warrants at that price, Berjaya Food could potentially raise gross proceeds of RM265.8 million, which will be used for working capital purposes.
The bonus issue, which is subject to approval from Bursa Securities, shareholders and any other relevant parties, is expected to be completed by end-2025.
Maybank Investment Bank has been appointed as principal adviser for the issue.
Berjaya Food posted a larger net loss of RM106.2 million for the nine months ended March 31, 2025, compared with RM53.31 million in the previous year’s corresponding period, as revenue dropped 39.8% to RM360.88 million from RM599.74 million. The company blamed the weaker performance on the prolonged impact of the sentiment related to the Gaza war.
Shares in Berjaya Food closed down half a sen or 1.75% to 28 sen on Monday, giving the company a market capitalisation of RM545 million. The counter has declined more than 8% year to date and 19% over the past year.