KUALA LUMPUR: Yi-Lai Bhd is issuing 97.05 million new ordinary shares on the basis of two bonus shares for three existing ones held on an entitlement date to be determined later.
In a statement today, the tiles manufacturer and information technology (IT) company said the group's issued share capital is RM93.69 million, comprising 145.57 million shares (including 484,900 treasury shares), as at January 20, 2021.
Upon completion of the corporate exercise, the share capital will increase to 242.62 million shares.
For illustrative purpose and based on the five-day volume-weighted average market price (VWAMP) of Yi-Lai shares of 95.68 sen, the theoretical ex-bonus price (TEBP) is 57.41 sen.
Yi-Lai executive director Au Yee Boon said the proposed bonus issue serves to reward the shareholders of the company for their continuous support and further enhance the marketability and trading liquidity of the company.
At the same time, the company has also proposed to change its name from Yi-Lai Bhd to YB Ventures Bhd.
"This rebranding exercise represents a significant step forward in our company's transformation, led by the new management team, to achieve its full potential as a diversified holding company, with its objective to assist its operating subsidiaries in their growth, maturation and operating performance as well as to pursue strategic opportunities that will contribute positively to shareholders' value," Au said.
Au is confident of maintaining the earnings momentum achieved following the group's continuous effort in cost optimisation coupled with the increased momentum in sales in the fourth quarter (Q4) of 2020.
In October 2020, Yi-Lai diversified into the business of blockchain technology solutions and system integration services.
"We are currently exploring a few more business collaborations and potentially a merger and acquisition (M&A) opportunity.
"The Covid-19 pandemic presents us with a good opportunity to explore such business opportunities given our strong financial position to expand our growth," said Au.
Barring any unforeseen circumstances, Yi-Lai said the proposed bonus issue is expected to be completed by the Q2 of 2021.