KUALA LUMPUR: SKB Shutters Corporation Bhd (SKB) shareholders have approved the company's bonus issue, and free warrants exercise at the extraordinary general meeting (EGM) on Monday.
Managing director Michelle Sin Siew Huey said the bonus issue would potentially enhance the trading liquidity of the company, given the adjustments to the share price and an increase in the number of shares.
"On the other hand, the 3-year convertible warrants, when being exercised, will provide us with additional working capital and allow the company to obtain proceeds without incurring interest expenses as compared to bank borrowings," she said in a statement.
The bonus issue comprises the issuance of 88 million new shares, with each existing SKB share receiving two bonus shares.
This follows the issuance of 66 million free warrants based on one for every two existing shares.
As of the latest practicable date (LPD), the issued share capital of SKB is RM45.81 million comprising 44 million shares.
Upon completing the bonus issue, the number of SKB shares will increase to 132 million.
Commenting on the company's future plans, executive Director Melissa Sin Tze Yi said the SKB's main objective is to continue expanding its regional coverage, production innovation, manufacturing capability and capacity.
"Our long term vision is to be recognised as the largest roller shutters and storage system player in SouthEast-Asia.
"With the economy gradually progressing above the levels seen a year ago, our team is ready to leverage on the results of research and development (R&D) efforts to create value for our shareholders," Melissa said.
Melissa is confident that the booming demand for insulated fire shutters (IFS) augurs well with the prospects of SKB.
"Our self-developed IFS has successfully passed the local authority's requirements for the use and supply of the product.
"Furthermore, in line with the enforcement of the adoption of new building requirements, we are confident that the demand for this product among our new and existing customers would increase," Melissa said.
She is also optimistic that the contribution from the IFS segment would grow to 20 per cent of total revenue within the next three years.
"The IFS is currently a patented product in the region and continue to see demand in ASEAN countries as more countries are adopting the insulated compartment requirements respectively.
"IFS is the result of our six years of R&D, and this is the first IFS in the region that has achieved 240 minutes of fire resistance and 240 minutes of insulation," Melissa said.