Gagasan Nadi Cergas Bhd has proposed a bonus issue of warrants on the basis of one warrant for every two shares held, according to a filing with Bursa Malaysia on Thursday.
The exercise will involve the issuance of up to 376.5 million warrants, each with a five-year tenure and an exercise price of 32 sen per warrant. The proposed exercise price represents a discount of approximately 25% compared with the company’s five-day volume-weighted average price of 42.76 sen as at the latest practicable date.
If all warrants are fully exercised, the company could potentially raise up to RM120.48 million in proceeds. Gagasan Nadi Cergas said the funds would primarily be used to strengthen working capital, with a focus on payments to suppliers and subcontractors for materials and progress claims related to ongoing projects.
In addition, part of the proceeds will be allocated to cover operating expenses for future projects, helping the group to maintain smooth operations while continuing to expand its project pipeline.
The proposed bonus issue is subject to approval from both Bursa Malaysia Securities and the company’s shareholders at an extraordinary general meeting. The company will provide further details and documentation to facilitate the approval process once scheduled.
Shares in Gagasan Nadi Cergas closed up half a sen, or 1.14%, at 44.5 sen on Thursday, giving the group a market capitalisation of RM335 million.
The bonus warrants issuance is part of the company’s broader strategy to optimise its capital structure, improve liquidity and provide additional funding flexibility as it pursues its growth and expansion plans. By offering discounted warrants to existing shareholders, Gagasan Nadi Cergas aims to reward shareholder loyalty while simultaneously raising funds to support its operational and project-related needs.
