Lum Chang Creations (SGX:LCC) is proposing to undertake a bonus issue of up to 330 million new shares, according to a Thursday filing with the Singapore Exchange.

Under the proposal, one bonus share will be credited as fully paid up for every one share held by existing shareholders.

The move aims to increase the company's share capital base, it said.

The proposed issue is subject to the approvals of the SGX-ST and the company's shareholders.

Shares of the engineering company were up nearly 2% in Thursday trading.