JF Tech Proposes Bonus Issue Of Up To 388.01 Mln Free Warrants
KUALA LUMPUR, Oct 29 (Bernama) -- JF Technology Bhd (JF Tech) has proposed a bonus issue of up to 388.01 million free warrants on the basis of two warrants for every five existing shares held by eligible shareholders.
In a statement, the Main Market-listed company, which manufactures high-performance test contacting and interface solutions for global integrated circuit (IC) makers, said the warrants would be issued at no cost to eligible shareholders and carry a tenure of five years.
The exercise price will be determined by the board at a later date, following receipt of all relevant approvals, at a discount or premium of not more than 20 per cent to the five-day volume-weighted average market price (5D-VWAMP) of the company’s shares before the price-fixing date.
The board will take into account the historical price movement of the shares and prevailing market conditions when determining the exercise price.
For illustration purposes, the exercise price is assumed to be RM0.80 per warrant, representing a premium of approximately 3.5 per cent to JF Tech’s 5D-VWAMP of RM0.7728 up to and including the latest practicable date.
“On this basis, and assuming the full exercise of all warrants, gross proceeds of between approximately RM308.4 million and RM310.4 million could be raised as and when the warrants are exercised, to be used for the group’s working capital and capital expenditure requirements.
“Barring any unforeseen circumstances, and subject to the approvals of Bursa Malaysia Securities Bhd and the shareholders of JF Tech at an extraordinary general meeting to be convened, the proposed bonus issue of warrants is expected to be completed by the first half of 2027,” the company said.
Its group managing director Datuk Foong Wei Kuong said the proposed bonus issue would give shareholders the option to increase their equity participation in the group by exercising the warrants at a predetermined price over the five-year tenure, with the potential to benefit from the group’s future growth.
“From the group’s perspective, the exercise of the warrants would also strengthen our capital base and shareholders’ funds, and provide additional working capital for the group, as and when they are exercised, without incurring the interest costs associated with bank borrowings,” he said.
Foong said the exercise would provide an additional avenue to reward shareholders, complementing the company’s steady stream of dividends, while improving the marketability and trading liquidity of its shares and encouraging wider investor participation.
Meanwhile, chief executive officer Andy Goh Joo Hwa said the group’s comprehensive range of solutions under one roof enabled it to support customers across multiple stages of their testing processes, helping to shorten their time to market.
“This also allows the group to grow its share of business with its existing base of approximately 280 active customers, alongside securing new ones.
“More importantly, it positions us to tap high-growth segments of the semiconductor industry — including artificial intelligence (AI) and high-performance computing, advanced packaging, automotive and electrification, and robotics,” he said.
-- BERNAMA