Further to my earlier article, The Star (30/1/07) reported:
“Shares in Bonia Corp Bhd surged to a new high yesterday after the company announced plans to issue free shares, split the stock and seek a transfer to the main board. The stock climbed 40 sen, or 18.2%, to RM2.60, off an intra-day high of RM2.65. A total of 674,100 shares changed hands.Its warrant issue gained 29 sen to RM1.67 “
Anything can happen in a rising share market scenario.
Well, maybe it’s time for some cash-strapped companies to try rights issue( with sweetener-warrants ) to get rid of high debts or restructure its cost of capital. Ironically, if the right issues are well rationale, besides getting the required cash, the share price might go up!!
FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four, Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.
Also author to another very popular free educational accounting cum finance blog: http://basiccollegeaccounting.com under the branding of College Accounting Coach.
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