Pecca Group Bhd , a Bursa Malaysia Main Market listed company mainly involved in vehicle leather upholstery manufacturing and design, announced today that it proposes to undertake a Proposed Bonus Issue of up to 564 million new ordinary shares (“Bonus Shares”) in Pecca on the basis of 3 Bonus Shares for every 1 existing Pecca share held by its shareholders.
In a filing with Bursa Malaysia today, Pecca said that in addition to rewarding its shareholders for their loyalty and continued support, the exercise will serve to provide existing shareholders with greater equity participation while maintaining their percentage of equity shareholding.
This will also potentially result in the improvement of trading liquidity of the Pecca’s shares by increasing the number of shares in issue, which results in its shares being more affordable and encourage greater participation by a wider group of public shareholders and investors.
The Company added that its reserves and total net assets will be maintained as the Proposed Bonus Issue will be implemented via the adoption of the enhanced bonus issue framework without capitalization of the Company’s reserves.
As of 30 September 2021, Pecca’s cash and cash equivalent stands at RM64.35 million, which the Company says it will utilize through value-accretive efforts and seek suitable merger & acquisition or joint-venture opportunities that can enhance the earnings visibility of the Company moving forward.
Leather and healthcare businesses will continue to be the two core engines that generate revenue for the Company.
The actual number of Bonus Shares to be issued pursuant to the Proposed Bonus Issue will be based on the total number of shares of Pecca in issue on the Entitlement Date, which will be determined and announced by the board at a later date. It expects to complete the Proposed Bonus Issue by the first quarter of 2022, after obtaining shareholders’ approvals. With a market capitalization of approximately RM637 million, Pecca is primarily involved in the manufacturing of leather upholstery for car seat covers and supply of leather cut pieces to the automotive leather upholstery industry. It is the largest automotive leather upholstery player in Malaysia’s OEM and pre-delivery inspection (PDI) passenger vehicle segments, and it also serves export markets such as Singapore, the US, the Netherlands, Australia, New Zealand, UK, Ireland and China