KUALA LUMPUR (Jan 8): Perak Transit Bhd’s shares rose as much as 7.83% or nine sen to RM1.24 after it proposed to undertake a bonus issue of up to 433.64 million new shares on the basis of one bonus share for every two existing ordinary shares to reward shareholders.

Perak Transit was among the top gainers by value on Bursa Malaysia on Monday (Jan 8). The stock opened three sen or 2.61% higher at RM1.18 in morning trade, against its closing price of RM1.15 last Friday. The counter further rose to RM1.24, before paring some gains to RM1.20 at 4pm.

Its trading volume stood at 2.48 million so far, about three times higher than its 200-day average trading volume of 828,738 shares.  

At RM1.20, the counter has a market capitalisation of RM898 million.

The proposed bonus issue, which requires shareholders’ approval, is estimated to be completed by the first quarter this year, with AmInvestment Bank appointed as principal adviser for the exercise.

Perak Transit’s largest shareholder is founder and managing director Datuk Seri Cheong Kong Fitt, who controls a 29.6% stake via 16.65% of direct shareholdings and 12.99% indirect shareholdings through his wife Datin Seri Lim Sow Keng and CBS Link Sdn Bhd.

Businessman Datuk Eddie Ong Choo Meng, who is linked to the Hextar group of companies, is the second largest shareholder with a 9.9% stake in Perak Transit, followed by Tropicana Corp Bhd executive vice-chairman Tan Sri Danny Tan Chee Sing, who holds 6.2% in the company.

Earnings-wise, the group's net profit for the nine months ended Sept 30, 2023 (9MFY2023) was up 8.21% to RM47.77 million, from RM44.15 million a year before, as revenue rose 3.25% to RM132.57 million, from RM128.39 million previously, lifted by higher contribution from the integrated public transportation terminal operations.  

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