GFM Services has proposed a bonus issue of free warrants on the basis of one warrant for every two existing shares with up to 379.73 million warrants expected to be issued.

KUALA LUMPUR (March 18): Integrated facilities management group GFM Services has proposed a bonus issue of free warrants on the basis of one warrant for every two existing shares.

As at March 15, GFM had 759.46 million shares in issue, and as such up to 379.73 million warrants may be issued, the group said in a filing on Monday.

It said the exercise price of the warrants has been fixed at 21 sen per share.

"Assuming the full exercise of warrants at the exercise price of 21 sen each, the company is expected to raise gross proceeds of up to RM79.74 million," GFM said, adding that the proceeds are expected to be used to fund its working capital.

GFM said the bonus issue aims to reward shareholders by providing an option to further increase their equity participation at a pre-determined price over the tenure of the warrants.

UOB Kay Hian Securities has been appointed as the principal adviser for the corporate exercise.

Previously, on Feb 19 GFM announced a private placement of up to 10% of its enlarged share base. The placement was subsequently completed on March 7 with 69 million new shares placed out at 22 sen each, raising total gross proceeds of RM15.18 million.

Shares of GFM closed down 1.5 sen or 4.4% at 32.5 on Monday, giving the group a market capitalisation of RM246.8 million.