KUALA LUMPUR (Oct 21): Harn Len Corp Bhd, which returned to profitability in the second quarter, has proposed an eight-for-five bonus issue of up to 411.17 million shares.

The entitlement date for the bonus issue would be determined later, said the plantation group in a Bursa Malaysia filing.

It said that based on the five-day volume-weighted average price (VWAP) of its shares up to Oct 20 and the lowest daily VWAP during the past three months, the theoretical ex-bonus price for the shares was expected to be between 54.68 sen and 71.15 sen.

Harn Len returned to the black in the second quarter ended June 30, 2022 (2QFY2022) with a net profit of RM4.93 million, after posting losses for six straight quarters since 4QFY2020.

For 2QFY2021, its net loss stood at RM2.58 million, as revenue rose 42% to RM75.45 million from RM53.24 million a year ago. The improved earnings were attributed to the better average selling prices of crude palm oil and palm kernel.

Harn Len said the bonus issue was expected to be completed by 4QFY2022.

The group’s shares closed at RM1.95 on Friday, giving a market capitalisation of RM414.19 million. The stock has appreciated 175% year-to-date.