KUALA LUMPUR (July 12): Teladan Setia Group Bhd has today proposed a bonus issue on the basis of three warrants for every ten shares held to reward its shareholders.

In a statement, the Melaka-based property developer said the exercise entails the issuance of 241.59 million warrants, with the exercise price of the warrants to be determined late.

It also said the entitlement date for the exercise will be determined and announced later.

“Based on the indicative exercise price of 50 sen, and assuming full exercise of warrants, Teladan Setia could potentially raise gross proceeds of up to RM120.8 million,” it added.

Its managing director Richard Teo Lay Ban said the company is committed to reward its shareholders whenever the situation permits.

“The proposed bonus issue of warrants will give our shareholders an opportunity to increase their equity participation in the group by exercising the warrants over the five-year tenure. Additionally, they stand to benefit from the potential capital appreciation of the warrants, which are tradable on the market,” said Teo.

For Teladan Setia, Teo said the potential proceeds raised upon the exercise of the warrants will strengthen the company’s capital base and provide additional funds for working capital, without the need of incurring interest costs as in the case of bank borrowings.

“Looking ahead, we are cautiously optimistic on the property development industry for the remainder of 2021. With the vaccination rollout being expedited recently, we are hopeful to see a much lower daily case count soon and that the general economy will follow suit in its recovery,” he added.

Shares of Teladan Setia closed unchanged at 59.5 sen today, for a market capitalisation of RM479 million. There were 4.51 million shares traded.