KUALA LUMPUR, ACE Market-listed HHRG Bhd has proposed a bonus issue of up to 491.68 million warrants, on the basis of two warrants for every five existing shares held.
The warrants will be issued at no cost to shareholders and will not raise immediate funds. The amount of funds raised will depend on the number of warrants exercised during the exercise period.
According to the biomass company’s filing on Monday, the exercise price and entitlement date will be determined later. Based on an illustrative exercise price of eight sen per warrant, the full exercise could raise up to RM39.33 million, which would be used for working capital purposes.
Malacca Securities Sdn Bhd has been appointed as the principal adviser for the exercise, which is expected to be completed by the fourth quarter of 2025. HHRG’s largest shareholder is the Ch’ng family through Cfamillie Holdings Sdn Bhd with a 15.31% stake, followed by GH Consortium Sdn Bhd — linked to former executive chairman Datuk H’ng Choon Seng and Goh Boon Leong — holding 11.94%.
In May, HHRG changed its financial year-end from March 31 to Sept 30. It later reported a net loss of RM2.15 million for the three months ended March 31, 2025, compared to a net profit of RM256,000 a year earlier, mainly due to one-off legal and fair value expenses.
For the quarter ended June 30, 2025, the group posted a net profit of RM1.73 million, down from RM5.98 million previously, as revenue slipped slightly to RM30.4 million from RM31.03 million. HHRG’s shares closed 1.5 sen lower at 8.5 sen on Monday, valuing the company at RM89.11 million.
