Kerjaya plans bonus issue to reward shareholders

Kerjaya Prospek Group Bhd is proposing a bonus issue of up to 677.44 million new ordinary shares with 169.36 million new warrants as a reward to shareholders, providing them greater equity participation in the company.

In an exchange filing yesterday, the construction and property developer noted the bonus shares will be issued on the basis of six bonus shares for every five existing shares held, while the new warrants are on the basis of six bonus warrants for every 20 existing warrants.

The bonus issue will further allow shareholders to retain their percentage of equity interest held in the company, while improving the liquidity and marketability of the shares and increasing Kerjaya’s capital base, it noted.

Assuming an indicative price of RM1.59 per bonus warrant, the company stands to raise RM269.3 million which will be used for working capital for the group.