Kelington proposes one-for-one bonus issue, free warrant, diversification into specialty gases

Kelington proposes one-for-one bonus issue, free warrant, diversification into specialty gases
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KUALA LUMPUR (April 6): Kelington Group Bhd has proposed a one-for-one bonus issue of up to 322.62 million new shares. Upon completion of the bonus issue of shares, the company will also undertake a bonus issue of up to 215.08 million warrants on the basis of one free warrant for every three shares held by then.  

The entitlement dates for the bonus issues would be determined later. 

In addition, Kellington, which provides ultra-high purity (UHP) gas delivery solutions to the electronics and semiconductor industry, also revealed its plans to venture into manufacturing, distribution and trading of industrial and specialty gases.

The expansion is in accordance with the group's business and growth strategy to further enhance the operations and financial performance of the industrial gases business, which could potentially provide sustainable revenue and income stream moving forward.

The group said the proposed bonus issues are to reward the shareholders, improve trading liquidity and encourage greater participation by investors.

For illustration purposes, assuming that all warrants are exercised at the indicative exercise price of 97.5 sen per warrant, the company will raise gross proceeds of up to approximately RM209.71 million.

The proposals are expected to be completed in the third quarter of 2021.

Kelington dropped three sen to close at RM2.11 today, valuing it at RM678.16 million.

Kathy Fong