Vivocom Intl Holdings Berhad (“Vivocom” or "Company") would like to announce the Board’s intention to undertake a bonus issue on the ratio of one bonus warrant for every three (1:3) ordinary shares held on an entitlement date to be determined later (“Proposal”).
The Proposal is currently pending shareholders’ approval which shall be sought at an extraordinary general meeting to be convened upon procuring Bursa Malaysia Securities Berhad ("Bursa Securities") approval for the listing of the bonus warrants.
After due consideration, the Board had decided on the bonus warrant issuance as the Proposal would:-
Reward existing shareholders for their loyal support by enabling them to participate in a derivative of the Company without incurring any costs;
Provides the shareholders with an opportunity to further increase their equity participation in the Company by exercising the Warrants at a pre-determined price during the exercise period.
Allow shareholders to benefit from potential capital appreciation from the exercise of the Warrants;
Further strengthen the capital base of the Company with the proceeds from the exercise of Warrants; and
Progressively raise proceeds as and when the Warrants are exercised to fund the working capital requirements of the Group.
The bonus warrants actually reflects the Board’s rising confidence in the Group’s robust and exponential growth prospects in the foreseeable future, making rewarding its shareholders with exceptional returns a top priority.
The Board of Directors had in the same announcement set the exercise price of the new warrants at RM0.95c. Dato Seri Chia added he is most optimistic about the future financial performance of the Group and look forward to further appreciation in the share price of Vivocom.
Further, in setting the new warrants exercise price, Dato Seri Chia also takes into account the existing Warrants E holders of the company who have been with the company for a long time, “we don’t want to undermine the value of Warrants E” he assured. Warrants E carries an exercise price of RM0.50 and will expire in year 2023.
Game Changer Sand Deal
Last week Vivocom announced it had secured a lucrative sand contract worth RM3.79B that could potentially soar to RM6B. This is a massive win and represented a Game Changer for the Group as it would contribute significantly to earnings for the next few years.
In recent press releases, Dato Seri Chia mentioned that he is also actively on the lookout for M&A targets in the renewable energy and digital technologies segments, companies with ‘explosive growth potential and super abnormal earnings’.
“Vivocom seeks to find the Next Big Thing, ‘industry disruptors with blockbuster growth potential’.
We are only just getting started. It takes a lot of hard work, courage and determination. We are looking for greatness and perfection,” Dato Seri remarked.
The CEO added, “We will only acquire companies that add value to our group's overall business and are PE accretive, and will only pay for such acquisition with the issuance of new shares. Our selection criteria of the type of companies we acquire are very stringent and prudent.”
Private Placement of New Shares
The Company had also on even date announced a private placement exercise of 10% of its share capital potentially raising funds of up to RM99.365 million based on an indicative issue price of RM0.98. The funds are primarily earmarked to funds the working capital requirements of its new business segment – sand mining which is expected to grow at an exponential rate going forward.
Long Term And Loyal Shareholders
“Vivocom has over twenty thousand shareholders. This enormous and loyal retail following is the major reason for our tremendous liquidity and momentum giving our share price added impetus,” Dato Seri asserts.
“We want Vivocom’s share performance to be equally exciting and rallying sharply. To ensure our share price keep on rising at a healthy and rapid rate as that would be the best way to reward the Company’s shareholders and create wealth and prosperity for all in the long term,” Dato Seri stated.
“Thais is why Vivocom’s share is so strong and resilient with splendid liquidity. You can say it’s our secret weapon. A strong share with high liquidity is a most valuable and prized resource which we can use as a currency for M&A activities. To fund and fast-track grpwth and strengthen our fundamentals.,” Dato Seri Chia elaborated.
SIM, Main Board Upgrade and Dividends Paying
To show his commitment, Dato Seri Chia has undertaken a voluntary self–imposed moratorium (or SIM) in that he will not dispose his personal stakes in Vivocom for the next 3 years. This will ensure the company’s long-term price stability and sustainability.
“As a priority, we will also work towards getting Vivocom elevated to the Main Board of Bursa Malaysia and be a dividends-paying company soonest possible. I am determined to leave behind an enduring legacy for all our valued shareholders,” concluded Dato Seri Chia.
In short, Vivocom, under the visionary leadership of Dato Seri Chia offers investors a defensive yet high earnings growth exposure. Its earnings are poised to grow rapidly in the next few years, driven by continued growth in its existing businesses and its sand mining business as well as its transformational M&A plans as espoused by Dato Seri Chia.
Source: Vivocom Intl Holdings Berhad
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