KUALA LUMPUR: WCT Bhd's proposed bonus issue and free warrants will help improve the liquidity and marketability of its shares, research houses said. In a research note, MIDF Research said the proposals, to be completed by the fourth quarter of 2012, is also a way to reward loyal shareholders for their continuing support. It is maintaining a "Buy" call for WCT with an unchanged target price (TP) of RM3.48. Meanwhile, Alliance Research said post bonus issue and free warrants exercise, its TP is adjusted to RM2.58 from RM3.10. "This gives a 16.6 per cent upside from the current price when adjusted post bonus issue. With sufficient upside, we retain our trading 'Buy' rating," it said in research note. As for AmResearch, it said the proposed issuance will nearly double the company's enlarged share capital to 1.6 billion from around 823 million as at Aug 30, 2012. "Flipside, we opine that any dilutive impact would likely be staggered over five years with an added sweetener in the form of free warrants being thrown in," it said. This comes amidst a rejuvenation in WCT's prospects going forward, the research house said. -- BERNAMA
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