MAIN Market-listed roller shutter manufacturer SKB Shutters Corp Bhd has obtained unanimous approval from shareholders for its proposed corporate exercises.
At its extraordinary general meeting (EGM) held yesterday (Dec 20), about 100% of the company’s shareholders voted in favour for the following two resolutions:
- Proposed bonus issue of 88 million new ordinary shares on the basis of two bonus shares for every one existing SKB share held on an entitlement date to be determined; and
- Proposed free warrants of up to 66 million warrants on the basis of one for every two existing shares held on an entitlement date which will be determined after completion of the proposed bonus issue of shares.
As of the latest practicable date (LPD), the issued share capital of SKB is RM45.82 mil comprising 44 million SKB shares. Upon completion of the bonus issue exercise, the number of SKB shares will increase to 132 million.
“The proposed bonus issue will potentially enhance trading liquidity of the group given the adjustments to the share price as well as an increase in the number of shares,” commented SKB’s managing director Michelle Sin Siew Huey.
“On the other hand, the three-year convertible warrants will provide us with additional working capital without incurring interest expenses as opposed to bank borrowings.”
On future plans, SKB’s executive director Melissa Sin Tze Yi said the group’s main objective is to continue expanding its regional coverage, production innovation, manufacturing capability and capacity.
“Our long term vision is to be recognised as the largest roller shutters and storage system player in Southeast Asia,” she envisages.
“With the economy gradually progressing above the levels seen a year ago, our team is ready to leverage the fruits of our research and development (R&D) efforts to create value for our shareholders.”
Melissa is confident that the booming demand for insulated fire shutters (IFS) augurs well with the prospects of SKB.
“Our self-developed IFS has successfully passed the local authority’s requirements in terms of usage and supply,” she noted.
“Moreover, we are confident that demand for this product among our new and existing customers would increase in line with enforcement on its adoption as a requirement for new building.’
Above all else, Melissa is also optimistic that the contribution from the IFS segment would grow to 20% of the group’s total group revenue over the next three years.
“Our IFS is currently a patented product in the region and continue to see demand in ASEAN countries as more countries are adopting the insulated compartment requirements,” she pointed out.
“A result of our six years of R&D, this is the first IFS in the region that has achieved 240 minutes of fire resistance and 240 minutes of insulation.”
At 12 noon, SKB Shutters was down 6 sen or 2.78% to RM 2.10 with 130,800 shares traded, task valuing the company at RM 92 mil – Dec 21, 2021
