KUALA LUMPUR (Jan 18): Eco World Development Group Bhd (EcoWorld) has proposed a bonus issue in the form of one warrant for every five existing shares.

In a bourse filing, the property developer said it plans to issue between 588.87 million and 693.95 million warrants on a date to be announced later. The exercise price of the warrants will also be determined later.

EcoWorld expects to raise gross proceeds of between RM606.5 million and RM714.8 million based on an indicative exercise price of RM1.03 and assuming full exercise of the warrants.

"Such proceeds if raised [as and when the new warrants are exercised], shall be utilised as working capital to fund the day-to-day operations of the group, amongst others, staff related expenses, and overheads and administrative expenses such as accounting related fees, utilities and office related costs," it said.

The exercise is expected to be completed by the first half of 2022, said EcoWorld.

EcoWorld's share price closed up 1.5 sen or 1.72% to 88.5 sen, giving the group a market capitalisation of RM2.61 billion.

Edited by S Kanagaraju

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