PETALING JAYA: Eversendai Corp Bhd is undertaking the proposed issuance of up to 390.6 million new free warrants on the basis of 1 warrant for every 2 existing shares.
The warrants will be issued at no cost to the entitled shareholders and the initial 3-year warrant exercise price has been fixed at 32 sen per warrant.
“From the 3rd anniversary date up to one market day prior to the 4th anniversary date, the 1st step-up warrant exercise price has been fixed at 38 sen per warrant. From the 4th anniversary date up to the maturity date of the warrants, 2nd step-up warrant exercise price has been fixed at 45 sen per warrant,” the group said in statement.
Asuming the full exercise of up to 390.6 million warrants at the initial exercise price of 32 sen each, the gross proceeds to be raised is up to RM124.98 million.
In the event of the full exercise of up to 390.6 million warrants at the 2nd step-up exercise price of 45 sen each, the company could potentially raise a maximum gross proceeds of RM175.75 million.
“Such proceeds if raised, shall be utilised to reduce the existing borrowings as well as working capital requirements of the Eversendai group.”
Executive chairman and group managing director Tan Sri AK Nathan views the proposed free warrants is an appropriate avenue to reward the existing shareholders of Eversendai.
“This will allow the shareholders of the company to further participate in the future prospects and growth of the group and to help to strengthen the group’s capital base and shareholders’ funds as well as potentially provide funds for Eversendai to pare down its borrowings and working capital requirements, as and when the warrants are exercised,” he said.
The proposed free warrants are not expected to have an immediate material effect on the earnings per share of the company, as it is not expected to raise any immediate funds upon its issuance.
MIDF Amanah Investment Bank Bhd is the principal advisor for the proposed issuance.
source https://www.thesundaily.my/business/eversendai-issues-step-up-free-warrants-DG2594041
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