Coastal Contracts Bhd is proposing to undertake a bonus share issue and free warrants in a move to enhance its capital base and also reward its shareholders.

Under the proposal, Coastal Contracts will issue one bonus share for every three existing shares held and one warrant for every eight shares held after the proposed bonus issue.

The proposed exercise is expected to be completed by the third quarter of this year, the company said in a filing to Bursa Malaysia today.

The company has also proposed to seek shareholders' approval for the authority to purchase the company's own shares up to ten per cent of the issued and paid-up share capital of the company as quoted on Bursa Securities as at the point of purchase. -- Bernama