Sand Nisko unveils 1-into-2 share split to enhance stock liquidity

LEADING manufacturer of rubberwood furniture in Malaysia, Sand Nisko Capital Bhd (formerly Len Cheong Holding Bhd) has mooted a share split-cum-bonus issue of warrants to spur trading liquidity of its shares.

Yesterday (Sept 7), the company announced its undertaking of a share split involving the subdivision of every one existing ordinary share in Sand Nisko into two shares.

At the same time, the group is proposing bonus issue of up to 115.83 million free warrants on the basis of one warrant for every two shares held on a date to be determined later.

A filing with Bursa Malaysia shows that as at the latest practicable date (LPD) prior to this announcement, the issued shares the company stood at 115.55 million shares. The company intends to implement the proposed share split prior to the implementation of the proposed bonus issue of warrants.

“The exercise is also aimed at rewarding shareholders for their continuous support by enabling them to participate in our convertible securities,” commented SNC’s managing director Emily Sow Mei Chet.

Emily Sow

“Moreover, the exercising of the three-year tenure warrants will provide us with additional working capital, thus allowing the group to obtain proceeds without incurring interest expenses if compared to bank borrowings.”

As part of its long-term strategy, the group has diversified into the construction segment with effect from its financial year ended (FYE) Dec 31, 2018 to further expand its revenue and income streams.

The construction segment is expected to contribute positively to the group’s future earnings, improve its financial performance and position as well as reduce reliance on its existing furniture business.

Following the group’s diversification into construction, the segment had contributed 69.22% of its total revenue in FYE Dec 31, 2020.

“The group shall continue to shift its business pivot to construction segment to diversify its income stream,” projected Sow.

“This is further enhanced by the acceptance of seven letters of award for construction projects with aggregate contract value of RM34.52 mil which was announced on July 14.”

At the close of yesterday’s trading, Sand Nisko was down 2 sen or 1.57% to RM1.25 with 3.83 million shares traded, thus valuing the company at RM144 mil. The counter has been on the uptrend since mid-April judging from its 52-week trading range of between 26 sen (low) and RM1.53 (high). – Sept 8, 2021

Picture credit Sand Nisko website

 

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