HHRG plans two-for-five bonus issue of warrants

• For the quarter ended June 30, 2025, HHRG logged a net profit of RM1.73 million against RM5.98 million a year earlier, as revenue slipped to RM30.4 million from RM31.03 million.

KUALA LUMPUR (Oct 7): ACE Market-listed HHRG Bhd (KL:HHRG) has proposed a bonus issue of up to 491.68 million warrants, on the basis of two warrants for every five shares held.

The exercise will not raise immediate funds as the warrants will be issued at no cost to shareholders. Proceeds to be raised would depend on the actual number of warrants exercised during the exercise period.

The exercise price of the warrants and the entitlement date will be determined later, the biomass firm said in a bourse filing on Monday.

However, assuming an illustrative exercise price of eight sen per warrant, the full exercise of 491.68 million warrants is expected to raise RM39.33 million in proceeds, which will be used to fund working capital.

Malacca Securities Sdn Bhd has been appointed as the principal adviser for the bonus issue, which is expected to be completed by the fourth quarter of this year.

The Ch’ng family, via vehicle Cfamillie Holdings Sdn Bhd, is HHRG’s largest shareholder with a 15.31% stake, followed by GH Consortium Sdn Bhd, the vehicle of former group executive chairman Datuk H’ng Choon Seng and Goh Boon Leong, with an 11.94% stake.

In early May this year, HHRG changed its financial year-end to end-September from end-March.

Weeks later, the company reported a net loss of RM2.15 million for the three months ended March 31, 2025, versus a net profit of RM256,000 in the same period a year ago, dragged by professional fees incurred related to legal cases and expenses incurred for recognised fair value losses from the issuance of additional share issuance scheme  shares as a one-off, non-recurring transaction.

For the quarter ended June 30, 2025, HHRG logged a net profit of RM1.73 million against RM5.98 million a year earlier, as revenue slipped to RM30.4 million from RM31.03 million.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.