KUALA LUMPUR: Kejuruteraan Asastera Bhd (KAB) has obtained its shareholders' approval to undertake a share split and a bonus issue with warrants at its extraordinary general meeting (EGM) today.
Managing director Datuk Lai Keng Onn said the share split was to improve KAB's trading liquidity and enhance accessibility to the market.
The bonus issue with warrants was the company's appreciation to the shareholders, he added.
"This said, the shareholders are now able to have greater participation in the company's equity, as well as to partake in the future growth of the company and any potential capital appreciation," Lai said in a statement today.
The electrical and mechanical engineering services provider said the share split involved the subdivision of every 10 existing shares into 18 split shares.
"Upon the completion of this exercise, together with the assumed new shares to be issued pursuant to the private placement and resale of treasury shares, the enlarged total number of 979.9 million issued shares will be subdivided into 1.8 billion split shares," it said.
The bonus issue with warrants, which will only be implemented following the completion of the share split exercise, entails the issuance of up to a maximum of 881.9 million warrants on the basis of one warrant for every two shares held.
"With the completion of the exercises, KAB's enlarged issued share capital will increase to a maximum of RM978.8 million, comprising 2.6 billion shares," it said.
Lai said KAB would streamline its business operations and work towards strengthening its financial performance to the next level.
"The push towards green energy solutions provides an exclusive opportunity for KAB to capitalise into the sustainable energy space.
"In view of this, KAB will continue to work hard and deliver sustainable earnings for our shareholders," he added.