KUALA LUMPUR (Oct 1): The share price of BP Plastics Holding Bhd rocketed more than 10% to a record high at RM2.97 in the early trading hours on Friday after the packaging material manufacturer proposed a bonus issue of one new share for every two held on Thursday.
The group, which was among the top 10 gainers on Friday morning, earlier also announced free bonus warrants on the basis of one warrant for every five shares held, with the entitlement dates for the two issues to be determined later.
At 10.40am, the counter had pared some gains at RM2.91, still up 26 sen or 9.81%, with some 5.8 million shares traded thus far. In the past one year, the stock had rallied 98.64% from where its share price was recorded at RM1.47 on Oct 1, 2020.
In addition, BP Plastics said the proposals, which are subject to shareholders' approval, could involve the issuance of 93.84 million bonus shares and up to 37.53 million warrants.
The group said the full exercise of the warrants could raise up to RM75.06 million based on an illustrative exercise price of RM2 per warrant. It intends to use the proceeds for its future business expansion, capital expenditure and working capital purposes.
BP Plastics said the proposals are expected to be completed by year end.
Last month, the group announced that its net profit for the second quarter ended June 30, 2021 (2QFY21) surged 74.39% to RM14.77 million, from RM8.47 million a year ago, mainly due to higher sales and a better product mix.
The group also saw its quarterly revenue climb 35.69% to RM108.95 million from RM80.29 million due to stronger product demand.
The group proposed a second single-tier interim dividend of two sen and a special single-tier dividend for FY21, bringing the group’s first-half dividends to six sen.
The entitlement date for both dividends is fixed to be Sept 22, and payment will be made on Oct 8.
For the first half ended June 30, 2021 (1HFY21), the group’s net profit jumped 66.39% to RM24.44 million from RM14.69 million a year earlier, while revenue increased by 32.38% to RM209.01 million from RM157.89 million.