KUALA LUMPUR, has unveiled plans to strengthen shareholder value through a proposed bonus issue of warrants and the introduction of an employees’ share option scheme (ESOS).
In a filing with Bursa Malaysia on Monday, the building facilities management and engineering services group said it intends to issue up to 84.84 million free warrants on the basis of one warrant for every four existing shares held. The warrants will have a five-year tenure.
As of now, AWC has 339.36 million shares in circulation and no existing warrants. Based on the proposed terms, the exercise could potentially raise up to RM78.9 million for the group, assuming full subscription and an indicative exercise price of 93 sen per warrant — representing a 23.9% premium to AWC’s five-day volume-weighted average price of 75.08 sen up to Oct 31.
The proceeds raised from the exercise will primarily be allocated towards working capital requirements and to support the company’s ongoing and future business activities. The final exercise price will be determined and announced at a later date.
In tandem with the bonus warrant issue, AWC is also proposing to establish a new employees’ share option scheme (ESOS) that will involve the issuance of up to 15% of the company’s total share capital, aimed at rewarding and retaining key talent by aligning employee interests with long-term shareholder value creation.
Both proposals — the bonus issue of warrants and the ESOS — are subject to shareholders’ approval at an upcoming extraordinary general meeting (EGM) to be convened soon.
Additionally, AWC said it will seek approval for a share buy-back mandate of up to 10% of its total share base, providing flexibility to manage its capital structure and enhance earnings per share when appropriate.
Shares of AWC closed unchanged at 75.5 sen on Monday, valuing the group at RM258 million.
