Hot Stock Tiong Nam rises 7.6% after news of proposed share split

Hot Stock Tiong Nam rises 7.6% after news of proposed share split
Business & Markets 2013
Written by Cynthia Blemin of theedgemalaysia.com
Thursday, 19 September 2013 14:56

KUALA LUMPUR (Sept 19): Shares of TIONG NAM LOGISTICS HOLDINGS [] Bhd (TNLH) rose as much as 7.6% in morning trades on news of a proposed share split and rights issue to warrants.

TNLH shares could be in the limelight following its 1-into-5 share split and rights issue proposals involving the issuance of 1 warrant for every 2 shares held after the share split, said HwangDBS Vickers Research in a note today.

At 2.35 pm, TNLH shares rose 20 sen or 4.5% to RM4.68 with 368,300 shares done after hitting a high of RM4.82 in earlier trades.

Yesterday, TNLH proposed to undertake a share split and a right issue of warrant. The right issue of warrants could help the company raise some RM42 million cash.

SJ Securities senior remiser Goh Kay Chong told theedgemalaysia.com the proposed share split and rights issue will increase the liquidity of the company, but it does not affect the market capitalisation of the company.

“It will surely attract more buyers and sellers because there are more shares out there and it is a good company to begin with,” said Goh.

He added the company’s proposals also signal confidence in its future prospects.

For the proposed share split, it will involve the subdivision of every one (1) existing ordinary share of RM1 each into five (5) ordinary shares of 20 sen each.

For the proposed renounceable rights issue of 210,258,500 warrants, they will be issued at an issue price to be determined later, on the basis of one warrant for every two TNLH shares held after the proposed share split.