KPower proposes 1-to-4 share split and free warrants

KUALA LUMPUR, Nov 13 -- Kumpulan Powernet Bhd (KPower) has proposed a one-to-four share split together with an issue of up to 150.8 million free warrants on the basis of one warrant for every three ordinary shares held following the share split exercise.

In a statement, the group said the the proposal is a revision of the previous proposal of one-to-two share split exercise announced on June 5, 2020.

It said the proposal is intended to encourage more participation by investors while simultaneously creating long-term value for the company’s shareholders as a reward for their loyalty and continued support.

Besides that, it said the free warrants would serve as a means for the group to raise fresh funds as and when they are exercised.

“We thought long and hard on how best to express our appreciation to our shareholders. This share split plus warrant is a splendid combination of mutual win for the company and our shareholders. With the share split, there will be liquidity and the shareholders will be rewarded for staying with us for the long term. 

"Consequently, we hope this will encourage more participation of investors into the company,” group chairman Datuk Dr Ir Mohd Abdul Karim Abdullah said.

The company said the entitlement date would be determined and announced later as it required the approvals of Bursa Malaysia and KPower shareholders.

“Barring any unforeseen circumstances, the proposals is expected for completion by the first quarter 2021,” it said.

It said no proceeds would be raised from the share split exercise.

However, it said as the implementation of the free warrants would be after the completion of the share split, the subdivided shares would be entitled to the warrants.

It said the free warrants would come with a tenure of five years and exercise price of RM2.50 after the share split. 

“In the event the warrants are fully exercised, the company is expected to raise gross proceeds of up to RM376.94 million,” it said.

It said the gross proceeds are expected to be utilised for the future working capital requirements of the group.

It added that the company would continue to explore new investment opportunities within the region and further solidify its ASEAN regional network after its successful investments in Indonesia and Nepal. 

KPower operates in the sustainable energy and utilities segment and specialises in renewable energy. 


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