KUALA LUMPUR: Kumpulan Powernet Bhd (KPower) has proposed a one-to-four share split together with an issue of up to 150.8 million free warrants.
This is on the basis of one warrant for every three ordinary shares held following the share split.
KPower said the proposal was a revision of the previous proposed one-to-two share split announced on June 5 this year.
"This share split plus warrant is a splendid combination of mutual win for the company and our shareholders. With the share split, there will be liquidity and the shareholders will be rewarded for staying with us for the long term.
"Consequently, we hope this will encourage more participation of investors into the company," said KPower chairman Datuk Dr Mohd Abdul Karim Abdullah said in a statement today.
The company said the entitlement date would be determined and announced later as it required the approvals of Bursa Malaysia and KPower shareholders.
Barring any unforeseen circumstances, KPower expects the proposals to be completed by the first quarter of 2021.
"No proceeds will be raised from the share split exercise. However, as the implementation of the free warrants will be after the completion of the share split, the subdivided shares will be entitled to the warrants," it said.
KPower said the free warrants, meanwhile, came with a tenure of five years with the exercise price at RM2.50 after the share split.
In the event the warrants are fully exercised, the company is expected to raise gross proceeds of up to RM376.94 million.
The gross proceeds are expected to be utilised for KPower's future working capital requirements.
"The proposal is intended to encourage more participation by investors while simultaneously creating long-term value for the group's shareholders as a reward for their loyalty and continued support.
"In addition, the free warrants will also serve as a means for the group to raise fresh funds as and when they are exercised," it said.
KPower said it would continue to explore new investment opportunities within the region and further solidify its Asean regional network, after its successful investments in Indonesia and Nepal.
"An expanded regional network will create greater value for all stakeholders," it added.