KUALA LUMPUR (Oct 27): Ni Hsin Group Bhd (KL:NIHSIN) has proposed a bonus issue of up to 312.65 million warrants, which could potentially raise RM112.55 million to fund its working capital needs and expansion of its electric vehicle (EV) business.

The exercise would involve issuing one free warrant for every two existing shares held by shareholders, the cookware maker said in a bourse filing on Tuesday.

Each warrant will allow its holder to subscribe for one new Ni Hsin share at a predetermined price within five years.

The exercise price will be fixed later, but the company has assumed a price of 36 sen per warrant for illustration purposes. At this indicative price, Ni Hsin could raise RM112.55 million if all warrants are exercised.

Of the proceeds, 95% will be used for working capital, including the purchase of electric motorcycles, batteries, charging cabinets and stainless steel, as well as marketing and administrative expenses.

The remaining 5% will be used to expand assembly lines, production and storage facilities for its EV business.

Ni Hsin said the group will only receive proceeds when warrant holders exercise their rights to subscribe for new shares.

It added that the exercise could increase Ni Hsin’s issued shares by up to 50% if all warrants are exercised, potentially diluting its earnings per share.

The proposal comes as Ni Hsin seeks to expand its EV business beyond electric motorcycles, including contract manufacturing and assembly operations.

In September, the group announced plans to diversify its EV operations through partnerships, new products and expansion into electric off-road motorcycles.

Its EV business generated revenue of RM1.43 million and recorded an after-tax loss of RM1.43 million for the financial year ended June 30, 2026.

The proposed warrants issue is subject to approvals from Bursa Malaysia and shareholders, and expected to be completed by the first quarter of 2027.

M&A Securities Sdn Bhd is the principal adviser for the exercise.

Shares in Ni Hsin closed three sen or 6.32% higher at 50.5 sen on Tuesday, valuing the company at RM315.8 million.

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