PETALING JAYA: Perak Transit Bhd’s (PTrans) proposal to undertake a bonus issue of up to 433.6 million new shares is expected to encourage a warrant conversion for bonus-share entitlements, bringing in additional capital for the company.

       According to TA Research, the group has decided to issue new shares as a bonus, with one bonus share being issued for each PTrans share that is currently owned as of a future date that will be specified.

       The research house stated in a report that the purpose of the planned bonus issue is to thank current shareholders for their ongoing support of PTrans.

       TA Research’s noted that its opinion of the group’s initiative is favourable as the warrants will provide the company with additional capital upon conversion.

       The research firm suggests that the extra money could be utilised to pay for the building of a brand-new integrated bus terminal in Tronoh.

       TA Research said the ex-bonus price will be adjusted to RM1.06 based on the research house’s target price of RM1.59 per share, as it maintains a “buy” call on PTrans.

       It also maintained its financial year 2023 (FY23) to FY25 earnings per share and dividend per share forecast, pending completion of the proposed bonus issue.

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