At Monday’s extraordinary general meeting, shareholders of outdoor advertising services provider Seni Jaya Corp Bhd approved the issuance of 24.3 million bonus warrants at a ratio of one bonus warrant for every two existing Seni Jaya shares.
The warrants’ exercise price will be established later.
Seni Jaya intends to use the gross proceeds from the full execution of the warrants to fund capital expenditures and future company expansion in its outdoor advertising business.
“The free warrants, which are being given at no cost to our shareholders, will enable them to further expand their ownership stake in the group by exercising the warrants at a predetermined price over the warrants’ five-year duration.” From Seni Jaya’s perspective, this might potentially generate additional funding for capital expenditure and future business expansion,” Seni Jaya CEO Cheah See Heong said in a statement.
Seni Jaya will continue to focus on its transformation plan in order to reposition and strengthen the group as Malaysia’s top provider of out-of-home (OOH) advertising services.
“We will leverage technology to adapt to an ever-changing landscape while also pursuing a digital transformation strategy. One of the aims is to upgrade our existing advertising inventory with digital elements such as LED displays, which will help us increase our profit margins in the future. On the other side, we are aggressively seeking company expansion options with strategic partners, whether through acquisition, partnership, or a combination of the two,” Cheah explained.
“With Malaysia’s fully vaccinated adult population recently reaching 80% and economies gradually recovering, we are certain that the OOH media business will rebound very soon. With more vehicles on the road and more people venturing outdoors, we also anticipate introducing our programmatic digital OOH or pDOOH advertising services very soon in collaboration with our partner, the region’s largest e-hailing company.
“Overall, given the ambitious initiatives we have in place, we are optimistic about Seni Jaya’s prospects and will seek to improve shareholder returns in the future years,” he added.
The bonus warrants issue is planned to close in the fourth quarter of 2021.
Seni Jaya’s shares finished unchanged at RM2.40 today, valuing the company at RM116.48 million. Year to date, the stock has increased by 200 percent.
Published by Zack Baharum