Tiong Nam proposes share split, rights issue of warrants

Tiong Nam proposes share split, rights issue of warrants
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 18 September 2013 18:50

KUALA LUMPUR (Sept 18): TIONG NAM LOGISTICS HOLDINGS [] Bhd (TNLH) has proposed to undertake a share split and a right issue of warrants.

The right issue of warrants could help the company to raise some RM42 million cash.

For the share split, this will involve the subdivision of every one (1) existing ordinary share of RM1.00 each into five (5) new ordinary shares of RM0.20 each.

For the rights issue of warrants, it has proposed renounceable rights issue of 210,258,500 warrants at an issue price to be determined later, on the basis of one (1) warrant for every two (2) TNLH shares held after the proposed share split.

The current issued and paid-up share capital of TNLH is RM84,103,400, comprising 84,103,400 TNLH shares. Upon completion of the proposed split, the issued and paid-up share capital of TNLH will be RM84,103,400, comprising 420,517,000 TNLH Shares.

“Having considered that TNLH has been trading at an average price of RM3.79 for the past three (3) months, the proposed share split will increase the affordability and liquidity of TNLH shares which will in turn, will increase the appeal of TNLH shares to a wider group of investors,” said the company in a filing with Bursa Malaysia.

It added the proposed rights issue of warrants aims to reward and provide shareholders with an option to further increase their equity participation of the company at a pre-determined exercise price and to benefit from the future growth and any potential capital appreciation arising therefrom.

“TNLH is expected to raise immediate gross proceeds of RM42,051,700 from the issuance of warrants and would then be able to raise further proceeds as and when any of the warrants are exercised,” added the company."