KUALA LUMPUR (Oct 29): JF Technology Bhd (KL:JFTECH) has proposed issuing up to 388.01 million free warrants to existing shareholders, giving them the option to buy more shares in the semiconductor test equipment maker over the next five years.
The proposed bonus issue will be on the basis of two free warrants for every five shares held, the group said in a statement on Thursday.
This means a shareholder holding 1,000 JF Technology shares would receive 400 warrants at no cost. Each warrant gives its holder the right to buy one new share at a predetermined price within five years.
While the warrants will be distributed for free, shareholders will have to pay the exercise price if they choose to convert them into ordinary shares.
JF Technology said the exercise could raise between RM308.4 million and RM310.4 million if all warrants are exercised, based on an illustrative exercise price of 80 sen per warrant.
The proceeds will be used to fund the group's working capital and capital expenditure needs.
The final exercise price will be determined later at a discount or premium of not more than 20% to the company's five-day volume-weighted average share price before the price-fixing date.
JF Technology group managing director Datuk Foong Wei Kuong said the proposed exercise was intended to reward shareholders while encouraging wider investor participation and improving trading liquidity.
"The exercise of the warrants would also strengthen our capital base and shareholders' funds, and provide additional working capital for the group, as and when they are exercised, without incurring the interest costs associated with bank borrowings," he said.
Meanwhile, chief executive officer Andy Goh Joo Hwa said the group is looking to benefit from growing demand for semiconductor testing solutions, particularly in artificial intelligence (AI), high-performance computing, automotive and robotics.
He said the group currently serves about 280 customers and has room to expand production at its Test Contacting Centre of Excellence in Kota Damansara.
The proposed bonus issue is subject to approvals from Bursa Malaysia Securities Bhd and shareholders at an extraordinary general meeting. It is expected to be completed in the first half of 2027.
This is not JF Technology's first bonus warrants exercise. In 2021, the group issued about 462 million free warrants alongside a bonus issue of three new shares for every existing share held. Those warrants expired in January 2026.
JF Technology shares closed 1.5 sen or 1.97% lower at 74.5 sen on Thursday, valuing the group at RM722.7 million. The stock has gained 61.96% year-to-date.