Quick take: JF Technology shares edge up 5% on bonus issue
Published on 06 Oct 2020. | Source: thestar.com.my
KUALA LUMPUR: JF Technology Bhd’s shares over 5% in early trade Tuesday after the company announced plans to reward the shareholders by issuing bonus shares with free warrants.
The manufacturer of test sockets rose 5.22%, or 20 sen to RM4.03, its highest in slightly over a month with 2.4 million shares traded.
JF Technology has proposed a bonus issue with free warrants on the basis of three bonus shares and two free warrants for every one existing share held at an entitlement date to be announced.
The issuance will involve up to 693 million bonus shares and 462 million free warrants, it said.
As for the warrants, it said their exercise price will also be fixed and announced at a later date.
For illustrative purposes, the exercise price of the warrants is assumed to be RM1.10, which could raise up to RM508.20mil for the group when the warrants are exercised, with the proceeds of that to be used as the group's working capital.
The proposed bonus issue of shares with warrants is expected to be completed in the fourth quarter of 2020.
Topic:
100% readers found this article insightful
Directory Advertisement:
