KUALA LUMPUR (Jan 19): A total of 6.07 million warrants of Tanco Holdings Bhd were converted into shares for RM1.88 million amid heavy selling pressure on the company’s mother shares, which have dropped 43.5% over the last two days.
The exercised warrants may have been part of a bonus issue that Tanco announced in August 2022, involving up to 1.47 billion free warrants on the basis of one Warrant C for every two existing shares held by entitled shareholders.
The warrants expiring Aug 2025, which similarly lost 54% in the last two days to close at 13 sen Friday afternoon, were converted at 31 sen per unit.
The conversion brought Tanco’s total issued shares to 2.03 billion units worth RM191.37 million, according to its filing on Bursa Malaysia on Friday.
The newly issued shares, totalling 0.3% of the group’s enlarged market capital, will be listed next Monday (Jan 22).
The identities of the warrant holders who exercised the block into shares are unclear.
According to Tanco’s annual report, the largest Tanco warrant holder is currently its major shareholder Datuk Seri Andrew Tan Jun Suan, with 92.45 million warrants or 12.11% held as at Oct 5 last year.
Tan had on Thursday bought 12 million shares representing about 0.59% in the company from the open market as Tanco’s share price tumbled. He now has a direct 11.56% stake in Tanco and an indirect 39.20% stake held under TJN Capital Sdn Bhd.
At noon market break, shares of Tanco were trading down 14 sen or 27.45% to 37 sen per share, valuing the company at RM743.27 million.
It is worth noting that the warrant (13 sen with exercise price of 31 sen) is still trading at a premium to the mother share of 37 sen.
The 43.5% decline in Tanco’s share price over the last two days have resulted in almost half a billion ringgit being wiped from its market capitalisation.
Tanco, whose share price took a sudden tumble by as much as 26.72% on Thursday and prompted Bursa Securities to suspend the counter’s intraday short-selling, said it was not aware of any corporate development, rumour or report that may have triggered the sharp fall.
The tumble in its share price wiped out all of its gains accumulated since October last year. Just Tuesday, the stock had hit its five-year high of 65.5 sen.
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Source: EdgeProp.my
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