Dyna-Mac proposes bonus issue of warrants to improve trading liquidity

OFFSHORE oil and gas contractor Dyna-Mac is proposing a bonus issue of up to 207.4 million warrants on the basis of one warrant for every five existing shares.

The move would see it raise gross proceeds of up to S$31.1 million. 

Each bonus warrant would give the warrant holder the right to subscribe for one new share at an exercise price of S$0.15. This is a 46.4 per cent discount to the last transacted price of S$0.28 per share on the Singapore Exchange on Dec 15, the last working day before the announcement was first made on Dec 18. 

In a bourse filing on Thursday (Jan 4), Dyna-Mac said that the bonus warrants are being issued to “reward shareholders for their loyalty and support” and will give them “the opportunity to participate in the future growth of the company”. The issuing of the proposed bonus warrants is likely to improve the trading liquidity of the company’s shares, added Dyna-Mac. 

Based on the company’s existing share capital of some one billion shares, up to 207.4 million bonus warrants will be issued. 

Assuming all the bonus warrants are fully exercised and converted into new shares, the company’s issued share capital will increase to 1.2 billion shares. Gross proceeds will also amount to S$31.1 million and will be deployed towards capital expenditure for yard development, as well as general corporate and working capital purposes, noted Dyna-Mac. 

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Shares of Dyna-Mac closed at S$0.32 on Thursday, down 1.5 per cent or S$0.005.