KUALA LUMPUR (Sept 30): Packaging material manufacturer BP Plastics Bhd has proposed a bonus issue of one new share for every two held.

The group also announced free bonus warrants on the basis of one warrant for every five shares held.

The entitlement dates for the two issues will be determined later, the group said in a filing with Bursa Malaysia Thursday.

BP Plastics said the proposals, which are subject to shareholders’ approval, could involve the issuance of 93.84 million bonus shares, and up to 37.53 million warrants.

The group said the full exercise of warrants could raise up to RM75.06 million, based on an illustrative exercise price of RM2 per warrant. It intends to use the proceeds for its future business expansion, capital expenditure and working capital purposes.

BP Plastics said the proposals are expected to be completed by the end of this year.

BP Plastics shares closed up nine sen or 3.52% at RM2.65, for a market capitalisation of RM497 million. Year to date, the stock has rallied by 84%.