Greatech proposes one-for-one bonus issue

KUALA LUMPUR (July 3): Automation solution provider Greatech Technology Bhd (KL:GREATEC) has proposed a one-for-one bonus issue, entailing the issuance of up to 1.25 billion new shares.

The entitlement date will be determined after all relevant approvals for the bonus issue have been obtained, the group said in a bourse filing on Wednesday.

Greatech said the bonus issue is to reward shareholders and encourage the trading liquidity of its shares on the stock exchange.

The group noted that as of June 21, its issued share capital was RM122.53 million, comprising 1.25 billion shares. Greatech also has 3.37 million shares granted under its share grant plan, with up to 679,800 of these shares to be vested prior to the entitlement date.

Thus, under a maximum scenario, Greatech’s enlarged share capital would amount to 2.51 billion shares, valued at RM125.17 million, assuming that the 679,800 grant plan shares will be converted into new Greatech shares prior to the entitlement date.

For illustrative purposes, based on the three-month volume-weighted average price of the shares up to June 21, which was RM4.42, the theoretical ex-bonus share price would be RM2.21.

Affin Hwang Investment Bank has been appointed as the principal adviser for the bonus issue.

Greatech shares closed eight sen or 1.5% higher at RM5.40 on Wednesday, resulting in a market valuation of RM6.77 billion. Over the past year, the counter has gained 11.11%.

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