KUALA LUMPUR: Ni Hsin Group Bhd has proposed a bonus issue of up to 312.65 million warrants on the basis of one warrant for every two existing ordinary shares held by entitled shareholders.
In a Bursa Malaysia filing today, the company, which specialises in stainless steel cookware and related products, said the warrants will be issued at no cost to entitled shareholders and will have a tenure of five years from the date of issuance.
Proceeds raised from the exercise of the warrants will be utilised for Ni Hsin's working capital and capital expenditure.
"The group intends to allocate 95 per cent of the proceeds to working capital, comprising the purchase of inventories such as electric vehicle motorcycles, batteries, charging cabinets and stainless steel coils, as well as marketing, after-sales service and administrative expenses.
"The remaining five per cent will be allocated to capital expenditure for the expansion of assembly lines, production and storage facilities," it said.
The company said the proceeds are expected to be fully utilised within 24 months from the date of receipt of the funds.
Barring any unforeseen circumstances, it said the application to Bursa Malaysia for the exercise is expected to be made within two months from the date of the announcement, and the exercise is expected to be completed by the first quarter of 2027.
M & A Securities Sdn Bhd has been appointed as the principal adviser.
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