GD Express Carrier Bhd (GDEX) has proposed to undertake an issuance of up to RM705.17 million free Warrants C on the basis of one Warrant C for every eight existing GDEX shares held on an entitlement date to be determined and announced later.
In a filing with Bursa Malaysia today, the company said the proposed free warrants issue is intended to reward shareholders of the company for their continuous support by enabling them to own the Warrants C which are tradable on Bursa Malaysia Securities without incurring any costs.
“(And to) provide the shareholders of the company with an opportunity to increase their equity participation in the company through the exercise of the Warrants C at a predetermined price during the tenure of the Warrants C.
“(To) strengthen the capital base of the company as well as enable the group to raise additional funds to fund its working capital requirements as and when the Warrants C are exercised, without incurring additional interest expenses compared with bank borrowings,” it said.
As at Oct 9, the company has an issued share capital of RM337.89 million comprising RM5.64 billion GDEX shares.
GDEX said the proposed free warrants issue is subject to the approvals of Bursa Securities and the shareholders.
“The board expects the proposed free warrants issue to be completed by the first quarter of year 2021,” it added.
It said the indicative exercise price of the Warrants C is assumed to be at RM0.40, which represents a premium of approximately 14.29 per cent to the five-day volume-weighted average price of GDEX shares up to and including the LPD (latest practicable date) of RM0.35.
“Based on the indicative exercise price of RM0.40 per Warrant C and in the event the Warrants C are fully exercised, the company is expected to raise gross proceeds of approximately RM281.71 million and RM282.07 million under the minimum scenario and maximum scenario respectively,” it said.
On prospects, GDEX said the group expects to see positive volume growth coming from digital platforms, in all business-to-business segment delivery, business-to-consumer segment delivery and consumer-to-consumer segment delivery.
“Going forward, the group will continue to position itself as a solutions provider for its customers for, among others, freight forwarding, custom clearance, logistics services, order fulfilment, express delivery and cash collection,” it added. — BERNAMA