KUALA LUMPUR (Aug 25): Focus Lumber Bhd, whose second-quarter net profit more than doubled to RM10.61 million from RM4.13 million a year earlier, has proposed a one-for-one bonus issue of up to 117.39 million shares.

In a Bursa Malaysia filing, the group said the entitlement date will be determined later.

The group said the maximum number of 117.39 million bonus shares is based on its existing 111.74 million issued shares, and assuming full exercise of all its 5.65 million outstanding employee share option scheme options into new shares prior to the entitlement date of the bonus issue.

It said that based on the five-day volume-weighted average price (VWAP) of its shares up to Aug 15, and the lowest daily VWAP of the shares during the past three months, the theoretical ex-bonus price for the shares is expected to be between 61.56 sen and 67.54 sen.

"The proposed bonus issue shall be wholly capitalised from the company's retained profits account at an amount of 20 sen for each bonus share.

"The capitalisation from the company's retained profits will increase the issued share capital of the company to a level which better reflects the current size and scale of operations and assets employed of Focus Lumber and its subsidiaries," the group said.

The bonus issue is expected to be completed by the fourth quarter of 2022, it added.

Shares in Focus Lumber went up two sen or 1.41% to close at RM1.44 on Thursday (Aug 25), giving the group a market capitalisation of RM162 million.