SUNGAI PETANI, KEDAH, MALAYSIA, October 17, 2023 – Electronic Manufacturing Services (EMS) provider EG Industries Berhad (EG Industries; EG 工业; Bloomberg: EG:MK) unveiled the proposal for a bonus issue of 225,108,037 free five-year warrants, at a ratio of one warrant for every two existing shares held by the Entitled Shareholders on the Entitlement Date.

The aim is to seek shareholders’ approval at the upcoming Extraordinary General Meeting.

The gross proceeds from the exercise, expected to be around RM405.19 million, will be channeled into working capital to meet the increasing demand for high-performance processors in 5G wireless networks.

It will aid in reducing the company’s bank borrowings. The exercise price of the warrants will be announced after obtaining the necessary approvals but before the Entitlement Date.

EG Industries’ Chief Executive Officer and Executive Director, Dato’ Alex Kang, emphasized the strategic timing of the exercise, coinciding with the group’s remarkable financial performance.

The company’s net profit tripled to RM38.4 million in the last fiscal year, primarily driven by the favorable product mix of consumer electronics, 5G wireless access, and photonics modular products.

Dato’ Alex Kang also highlighted the company’s upcoming Smart Factory 4.0 in Batu Kawan, Penang, set to be completed by early 2024.

The facility will focus on producing advanced technologies, including high-speed optical signal transmitters and receivers for 5G wireless networks and high-speed 5G switches using co-packaged optics technology.

EG Industries’ expansion plans, including the establishment of Smart Warehouses in Sungai Petani, Kedah, and an International Procurement Centre, are expected to enhance Malaysia’s position in supporting technologically advanced customers.