KUALA LUMPUR: JF Technology Bhd 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.
In a statement, the semiconductor test solutions provider said the warrants would be issued at no cost to entitled shareholders and carry a tenure of five years.
The entitlement date will be determined and announced later.
JF Technology said the exercise could raise gross proceeds of between RM308.4mil and RM310.4mil, assuming full exercise of the warrants at an illustrative price of 80 sen each.
The proceeds will be used for the group's working capital and capital expenditure requirements.
The final exercise price will be determined later at a discount or premium of not more than 20% to the five-day volume-weighted average market price of JF Technology shares before the price-fixing date.
Group managing director Datuk Foong Wei Kuong said the proposed exercise was intended to reward shareholders while improving the marketability and trading liquidity of the company's shares.
“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.”
Meanwhile, chief executive officer Andy Goh Joo Hwa said the group's expanded semiconductor test solutions capabilities would allow it to tap opportunities in artificial intelligence, high-performance computing, advanced packaging, automotive and robotics.
He said JF Technology currently serves about 280 active customers and has room to expand capacity at its Test Contacting Centre of Excellence in Kota Damansara.
The proposed bonus issue is subject to approvals from Bursa Malaysia Securities Bhd and shareholders at an extraordinary general meeting.
Barring unforeseen circumstances, the exercise is expected to be completed in the first half of 2027.