My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 121 FINANCIAL STATEMENTS DIRECTORS’ REPORT (CONT’D) ISSUES OF SHARES AND DEBENTURES During the financial year:- (a) the Company increased its issued and paid-up share capital from RM360,630,599 to RM634,262,802 by:- (i) Issuance of 12,500,000 new ordinary shares amounting to RM14,975,000, net of transaction costs, as part of the total consideration for the acquisition of a 10% equity interest in an other investment by the Group as disclosed in Notes 11(c) and 23 to the financial statements; (ii) issuance of 45,623,744 new ordinary shares from the exercise of the first and second Dividend Reinvestment Plan (“DRP”) at an exercise price of RM1.28 per share amounted to RM58,398,392 as disclosed in Notes 23 and 40 to the financial statements; and (iii) issuance of 120,000,000 new ordinary shares from the exercise of the first tranche private placement for a cash consideration of RM211,508,811, net of transaction costs, as disclosed in Note 23 to the financial statements. The new ordinary shares issued rank pari passu in all respects with the existing ordinary shares of the Company. (b) there were no issues of debentures by the Company. TREASURY SHARES During the financial year, the Company purchased 25,999,600 of its issued ordinary shares from the open market at an average price of RM1.19 per share. The total consideration paid for the shares purchased was RM30,914,378 including transaction costs. In addition, the Company had cancelled 112,500,000 of its treasury shares at an average price of RM1.01. The ordinary shares purchased were being held as treasury shares in accordance with Section 127(6) of the Companies Act 2016 and were presented as a deduction from equity. As at 31 December 2020, the Company held as treasury shares a total of 53,664,700 of its 3,671,929,737 issued and fully paid-up ordinary shares. The treasury shares are held at a carrying amount of RM61,652,241. The details of the treasury shares are disclosed in Note 24 to the financial statements. OPTIONS GRANTED OVER UNISSUED SHARES During the financial year, no options were granted by the Company to any person to take up any unissued shares in the Company. BAD AND DOUBTFUL DEBTS Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for impairment losses on receivables and satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for impairment losses on receivables. At the date of this report, the directors are not aware of any circumstances that would require the further writing off of bad debts, or the additional allowance for impairment losses on receivables in the financial statements of the Group and of the Company.