KUALA LUMPUR (Sept 25): SEG International Bhd (KL:SEG), which operates SEGi University & Colleges, has proposed a bonus issue of up to 610.94 million warrants, on the basis of one warrant for every two shares held by shareholders.
The exercise will not raise any immediate funds, as the warrants will be issued at no cost to entitled shareholders, but the amount of proceeds to be raised would depend on the actual number of warrants exercised during the exercise period.
According to a bourse filing, SEG International intends to fix the exercise price of the warrants at 50 sen, which is a discount of 18.83% to the five-day volume weighted average market price of the company’s share price of 61.6 sen as at Sept 24.
Assuming full exercise of the warrants at that price, the group could potentially raise gross proceeds of RM305.47 million, which will be used for working capital purposes.
The bonus issue, which is subject to approval from Bursa Securities, shareholders and any other relevant parties, is expected to be completed by end-2025.
UOB Kay Hian (M) Sdn Bhd has been appointed as the principal adviser for the corporate exercise.
In recent years, the private education operator’s earnings had slipped below the RM40 million mark it consistently achieved since 2017. It reported net profits of RM11.58 million in the financial year ended Dec 31, 2023 (FY2023) and RM5.25 million in FY2024.
For the first half ended June 30, 2025 (1HFY2025), net profit declined 16% to RM2.13 million from RM2.53 million a year earlier, while revenue rose 4% to RM97.41 million from RM93.65 million.
Shares in Main Market-listed SEG International closed up half a sen or 0.8% at 62.5 sen on Thursday, giving the company a market capitalisation of RM791 million. Year to date, the stock has gained 2.5%.