Serba Dinamik Annual Report 2018

233 SERBA DINAMIK HOLDINGS BERHAD ANNUAL REPORT 2018 14. Capital and reserves 14.1 Share capital _____________________ Group and Company _____________________ Amount Number Amount Number RM’000 of shares RM’000 of shares 2018 2018 2017 2017 Ordinary shares Issued and fully paid Opening balance 928,194 1,335,000,000 531,800 1,063,600,000 Issued during the financial year 427,200 133,500,000 407,100 271,400,000 Share issue expenses ( 11,047) - ( 10,796) - 416,153 133,500,000 396,394 271,400,000 ------------------ ---------------------- --------------- -------------------- Closing balance 1,344,347 1,468,500,000 928,194 1,335,000,000 ========= =========== ========= ========== The new Companies Act 2016, which came into operation on 31 January 2017, abolished the concept of authorised share capital and par value of share capital. There is no impact on the number of ordinary shares in issue or the relative entitlement of any of the members as a result of the transition. The holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share at meetings of the Company. On 8 February 2017, the Company issued 271,400,000 new ordinary shares as part of the Initial Public Offering at RM1.50 per ordinary share in addition to an offer for sale by the existing shareholders of 118,000,000 shares of the total enlarged capital of the Company. On 30 January 2018, the Company has completed a private placement exercise, in which the Company issued 133.5 million new shares with an issue price of RM3.20 per placement shares. 14.2 Merger reserve Pursuant to the restructuring in relation to the initial public offering, Serba Dinamik Holdings Berhad has acquired the shares in Serba Dinamik Group Berhad for a purchase consideration of RM531,799,999. The difference, net of tax, between the carrying value and purchase consideration was treated asmerger reserve. N O T E S T O T H E F I N A N C I A L S TAT E M E N T