by M. JAY SHEILA

SPRITZER Bhd shares rose up to 15 sen or 5.98% to RM2.51 in early trading today.

The natural mineral water producer was among the top gainers as at 11.30am today, with more than 182,000 shares traded. It hit an intra-day high of RM2.52.

Spritzer has retained a ‘Buy’ at MIDF Research today, with an unchanged target price of RM2.80.

In a note released today, MIDF Research was positive on the Perak-based company’s proposed a one-for-two bonus issue with a later-determined entitlement date, which is expected by the end of 2Q23. Post-bonus issue, Spritzer’s share base will expand by 50% to 319.3 million shares.

MIDF Research said the proposed bonus issue is expected to increase Spritzer’s trading liquidity at a reasonable share price without affecting the company’s market capitalisation.

“This could promote greater investor participation and perhaps expand the shareholder base of the company,” it said.

MIDF Research is also optimistic about Spritzer’s outlook underpinned by its defensive business nature, with consistently improving demand for bottled water in Malaysia that supports the sales volume, increased demand for out-of-home beverage consumption and recent acquisition of the 1,227.6 acres of land in Bukit Gantang, Perak.

Its top shareholders are Yee Lee Corporation Bhd with a 31.51% stake, Yee Lee Holdings Sdn Bhd (10.72%) and Lim A Heng (5.38%). It has a market capitalisation of RM534.3 million.