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Friday, August 26, 2016

Gadang proposes 1-to-2 share split, 1-for-4 bonus issue

Gadang proposes 1-to-2 share split, 1-for-4 bonus issue
By Gho Chee Yuan / theedgemarkets.com | August 25, 2016 : 11:33 PM MYT

KUALA LUMPUR (Aug 25): Gadang Holdings Bhd is proposing a share split to sub-divide every one RM1 Gadang share into two shares of 50 sen each.

As at Aug 16, 2016, its issued and paid-up share capital is RM258.62 million, comprising 258.62 million shares, which will be enlarged to RM258.62 million, comprising 517.25 million subdivided shares on completion of the share split.

In a bourse filing today, Gadang said the proposed share split should enhance the marketability and trading liquidity of its shares.

Following the share split, the company plans to issue up to 129.31 million bonus shares, on the basis of one bonus share for every four subdivided shares held, to reward existing shareholders for their loyalty and support.

Subsequently, the company will undertake a bonus issue of up to 129.31 million warrants, on the basis of one warrant for every four subdivided shares held.

To facilitate the corporate exercises, Gadang proposed to increase its authorised share capital to RM500 million, comprising 1 billion shares, from RM400 million comprising 400 million shares, and to amend its memorandum and articles of association to accomodate the expected increase in authorised share capital.

Gadang expects the proposals to be completed by end-2016. Its shares settled four sen or 1.52% lower at RM2.60 today, valuing it at RM672.42 million.

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