KUALA LUMPUR (Jan 26): Steel Hawk Bhd (KL:HAWK) has proposed a bonus issue of warrants on the basis of one free warrant for every two shares held in the oil and gas services provider.

The proposed exercise involves the issuance of up to 245.28 million warrants, with a five-year tenure, carrying an exercise price of 17 sen apiece, according to a bourse filing on Monday. Steel Hawk currently has 490.56 million shares in circulation and no outstanding warrants.

If fully exercised over five years, the bonus warrants could raise Steel Hawk up to RM41.7 million. Proceeds will be used to fund working capital.

The 17 sen exercise price represents a 28.75% discount to the five-day volume-weighted average market price of Steel Hawk shares up to and including Jan 21 of 23.86 sen.

The exercise will require shareholders’ approval at an extraordinary general meeting to be held later.

It anticipates completing the bonus issue of warrants in the second quarter of 2026.

The company's special issue of up to 70 million new shares to Bumiputera investors saw 558,000 new shares issued at 34 sen apiece in December last year. 

According to AskEdge, Steel Hawk currently trades at a price-earnings multiples of 8.2, lower than most peers, and a price-to-net asset value of 2.0 times, the highest among them. 

Shares in Steel Hawk ended half a sen or 2.13% lower at 23 sen on Monday, valuing the company at RM110.48 million.