Bonia Proposes Main Board Transfer, 1-for-2 bonus, Share Split

Bonia Corporation Bhd has proposed a transfer to the Main Board by undertaking the following:

• a one-for-two bonus issue of up to 33.67 million new RM1 shares and
• a subsequent share split of one share into two 50 sen shares.

As at Jan 24, Bonia had a paid-up capital of RM47.99 million shares comprising 47.99 million shares, with 999,000 outstanding ESOS options and 18.36 million outstanding warrants. The proposed bonus issue will result in its paid-up capital to increase up to RM101.03 million, which pursuant to the share split will comprise 202.06 million shares of 50 sen each.
With this capital restructuring well timed with this upcoming share market, it augur well for the investors of Bonia.
As in my earlier articles, bonus issue is merely an accounting entry to increase the number of shares but not affecting the share capital value, therefore theoretically it should not increase the company’s share price but if it is well timed during a rising share market ( plus other reasons like company’s prospect, etc), it should work wonder for the company’s share price. And coupled with a share split which means more shares – investors will definitely be very happy !. ( Share price at 3/2/2006-$1.20 & whilst on 16/1/07 -$2.24.
The Edge(29/1/07)