FoundPac proposes 2-for-5 bonus issue

PETALING JAYA: Precision engineering parts fabricator and supplier FoundPac Group Bhd has proposed to undertake a bonus issue of up to 148 million new ordinary shares, on the basis of two bonus shares for every five existing ordinary shares in the company.

In a filing with Bursa Malaysia yesterday, FoundPac said the proposed bonus issue of RM14.8mil would be capitalised from the share premium of RM14.71mil, with the remaining RM89.96mil to be derived from its retained profits.

As of June 30, the company had retained profits amounting to RM136.87mil.

After the completion of the proposed bonus issue, FoundPac will have retained profits of RM46.91mil.

“The board confirms that the reserves available to be capitalised for the proposed bonus issue are unimpaired by losses on a consolidated basis, based on FoundPac’s audited consolidated financial statements as at June 30, 2017.

“Hence, FoundPac is in compliance with Rule 6.30(1) of the Listing Requirements,” said FoundPac in the Bursa filing.

Apart from that, the company is also proposing the establishment of an employees’ share option scheme (Esos) of up to 10% of FoundPac’s issued shares, as well as a share buy-back of up to 10% of its total number of issued shares.

As of Sept 20, the total number of issued shares of FoundPac amounted to 370 million shares.