JF Technology plans free warrants that could raise RM310.4 million
The proposed allocation is two warrants per five existing shares, with proceeds intended for working capital and capital expenditure.
JF Technology Bhd is proposing to distribute up to 388.01 million warrants free to shareholders, potentially raising RM310.4 million through their exercise. The semiconductor test interface solutions provider expects to complete the exercise during the first half of 2027.
Eligible holders would receive two warrants per five existing shares. Each warrant would have a five-year term, while the date determining shareholders’ entitlement remains unset. The company said proceeds would support working capital and capital expenditure.
After the necessary approvals, the board would decide the exercise price. This would be no more than 20 per cent above or below the shares’ volume-weighted average market price over the five days preceding price fixing.
The company illustrated the proposal using an exercise price of 80 sen for each warrant. That represents a premium of about 3.5 per cent over the corresponding five-day average of 77.28 sen at the latest practicable date. If all warrants were exercised on that assumption, gross proceeds could range from RM308.4 million to RM310.4 million.
Group managing director Datuk Foong Wei Kuong said the proposal would supplement dividends as a shareholder reward and could make the shares more marketable and liquid. He said it would also bolster capital and shareholders’ funds, providing working capital without bank borrowing interest costs.
