#Hot Stock* SYF jumps 11% on bonus issue, profit-taking seen

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KUALA LUMPUR (Sept 4): SYF Resources Bhd rose as much as 12 sen or 11% after the furniture manufacturer proposed a bonus share issue, which comes with free warrants.

At 9.56am, SYF was traded at RM1.15 with some 3.09 million shares done. The counter had earlier climbed to a high of RM1.21

The rise in SYF shares in recent months has not gone unnoticed. Dealers say they  foresee profit-taking in the stock.

"The counter was on the rising trend over the past year. It was traded at 50 sen last year and shot up to as high as RM1.32 in June this year.

"Overall, the counter is still on the positive side," a dealer told theedgemalaysia.com over telephone.

In a filing with Bursa Malaysia yesterday, SYF had proposed a bonus issue of up to 312.83 million new shares together with the same number of free detachable warrants.

The bonus share and warrant issues will be on the basis of one bonus share and one warrant for every share held by shareholders.

"The exercise could potentially raise gross proceeds of up to RM218.98 million, assuming full exercise of the warrants at an indicative price of 70 sen per warrant, which will be used to repay borrowings and for working capital," SYF said.