KUALA LUMPUR, Nov 13 — Inari Amertron Bhd, a company involved in the electronics manufacturing services, saw its shares rise on news of rewarding shareholders with a 1:4 bonus issue, while raising the authorised share capital.

At 11am, the company’s shares rose 10 sen to RM1.90 with 2.90 million shares transacted.

In a note, research house Affin Hwang Capital said it was neutral on this development.

“More pertinent, however, is the focus on Inari’s attractive valuations and strong earnings growth, underpinned by its radio frequency division,” it said.

In an announcement to the Bursa Malaysia, Inari said that it is proposing a bonus issue of up to 206 million new shares on the basis of one share for every four held.

“This will take into account the 731 million Inari shares and also warrants and ESOS outstanding,” the research house said.

Affin added that the bonus issue will be effected by way of capitalising up to RM20.6 million from the share premium account of the company.

Separately, Inari has proposed to increase its authorised share capital from RM100 million comprising one billion Inari shares to RM200 million comprising of two billion Inari shares.

Affin set a “buy” call on Inari with a target price of RM4.28. — Bernama