Ni Hsin proposes bonus warrants with potential RM112.55 million proceeds
The proposed allocation is one free warrant for every two shares, with 95% of proceeds earmarked for working capital.
Ni Hsin Group Bhd has proposed issuing up to 312.65 million bonus warrants, potentially generating RM112.55 million for working capital and EV expansion if holders exercise all the warrants at an illustrative price.
In a bourse filing, the cookware maker said shareholders would receive one free warrant for every two shares they hold. Each warrant would give its holder the right to buy one new Ni Hsin share within five years. The exercise price has yet to be set; the company used 36 sen for illustration.
Ni Hsin said it would receive funds only when holders exercise their warrants. It plans to allocate 95% of proceeds to working capital, covering electric motorcycles, batteries, charging cabinets, stainless steel, marketing and administrative costs. The other 5% would support additional EV assembly lines and expanded production and storage facilities.
Full exercise of the warrants could enlarge the company's issued share base by up to 50%, potentially diluting earnings per share, Ni Hsin said. The proposal requires approval from Bursa Malaysia and shareholders, with completion expected in the first quarter of 2027. M&A Securities Sdn Bhd is advising on the exercise.
Ni Hsin is seeking to broaden its EV operations beyond electric motorcycles into contract manufacturing and assembly. In September, it announced diversification plans involving partnerships, new products and electric off-road motorcycles.
For its financial year to June 30, 2026, the EV business posted RM1.43 million in revenue and an after-tax loss of RM1.43 million.
