KUALA LUMPUR (July 23): Powerwell Holdings Bhd has proposed a bonus issue of 116.11 million warrants on the basis of one warrant for every five shares held.

The entitlement date will be determined after all relevant approvals have been obtained, the electric switchboard and switchgear manufacturer said in an exchange filing on Thursday.

The company has an issued share capital of 580.55 million shares as at June 30.

Powerwell said the warrants will be issued with no cost to entitled shareholders.

The company intends to fix the exercise price at a premium of up to 50% to its five-day volume-weighted average price (VWAP).

For illustration purposes, the company assumed an indicative exercise price of RM1.10 per warrant, representing a 38.45% premium to the VWAP of its shares of 79.45 sen up to June 30.

Assuming all the warrants are exercised at the indicative exercise price, Powerwell could raise gross proceeds of up to RM127.72 million, which it intends to use for working capital, including utilities, employee wages and benefits, and general administrative expenses.

The bonus issue is subject to approvals from Bursa Malaysia Securities and shareholders, and is expected to be completed in the fourth quarter of 2026.

UOB Kian Hin has been appointed principal adviser for the exercise.

Powerwell posted a record net profit of RM24.07 million for the financial year ended March 31, 2026, up 28% compared to RM18.77 million in the previous year, as revenue increased 15.6% to RM159 million from RM137.51 million.

Powerwell’s share price, which reached a recent high of 88 sen in June, closed 1.5 sen or 1.83% higher at 83.5 sen on Thursday, giving the company a market capitalisation of RM485 million. Year to date, the stock has risen 29%.