Vivocom proposes 1 for 4 bonus issue

Vivocom executive director Choo Seng Choon

KUALA LUMPUR: Vivocom International Holdings Bhd has proposed a one-for-four bonus issue which would involve issuing up to 870.31 million new shares.

Vivocom executive director Choo Seng Choon said on Tuesday the bonus issue was to reward all the existing shareholders, many of whom had been with the company when it previously known as Instacom and core business of telecommunications.

“Bulk of these shareholders are retailers who believed in the company when we were still in our infancy and, as we grow from strength to strength, we would like to reward them with this bonus issue as only with their loyal and continued support, Vivocom can surge ahead to attain greater heights,” he added.

Choo also said the bonus issue would increase the issued and paid-up share capital to a level which would be more reflective of its current scale of operations and assets employed. Its orderbook was more than RM1.4bil with subsidiaries involved in construction, manufacturing and telecommunications. 

Vivocom is the largest company on the ACE Market with a market capitalisation of some RM835.49mil as at last Thursday’s close of 24 sen, assuming all warrants are converted.

“At the present trading price levels of 23 sen, Vivocom shares represent great value for bargain hunters especially in view of the bonus issue reward just announced.

“Despite the share price having in the past several weeks corrected from its 37 sen high, long term shareholders have much to gain by staying invested in Vivocom,” Choo said.

He added the recent price correction was a healthy phenomenon and an excellent opportunity for investors to buy as its price weakness has made the share relatively cheap compared to its peers.
 
“We are now in the last stage of finalising another head of agreement for another project worth over RM600mil in Ipoh. The agreement will be announced in due course when completed and signed.

He said the company’s second quarterly results to be reported  in the coming weeks would be at least as strong as the first quarter.