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KUALA LUMPUR: Kumpulan Powernet Bhd
has proposed increasing the number of its shares by dividing a current share into four new shares to be issued with free warrants.
Warrants will be distributed to eligible shareholders on the basis of one warrant for every three shares held after the share split exercise.
Warrants can be converted into new KPower shares based on the exercise price of RM2.50 per warrant.
“This stock split plus warrant is a splendid combination of mutual gains for the company and our shareholders. With the stock split, there will be liquidity and shareholders will be rewarded for staying with us for the long term,” said Chairman Datuk Mohd. Abdul. Karim Abdullah said today in a statement.
The new share distribution ratio is a two-for-one revision proposed in June this year.
Meanwhile, the free warrants come with a five-year tenure with the strike price at RM2.50 after the stock split.
In the event that the guarantees are fully exercised, the company is expected to collect gross income of up to approximately RM376.94 thousand.
The authorization date will be determined and announced later, as it requires the approval of the shareholders of Bursa Malaysia and KPower.
“Barring unforeseen circumstances, the Group expects the proposals to be completed by the first quarter of 2021,” he said.
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