AT least seven Mesdaq-listed companies issued bonus shares as part of their initial public offerings (IPOs), just prior to their listings, last year.
The companies were YGL Convergence Bhd, Key West Global Telecommunications Bhd, Nextnation Communication Bhd, Vitrox Corp Bhd, MNC Wireless Bhd, Borneo Aqua Harvest Bhd and N2N Connect Bhd.
After taking into account the bonus shares, their effective IPO price per share was reduced according to the proportion of the new shares issued under their respective exercises.
The bonus shares were issued by cancelling the company's share premium account.
For instance, an investor who was originally allotted one 99 sen share for Borneo Aqua's IPO would instead have three shares upon the company's listing.
The two “extra” shares, in effect, reduced Borneo Aqua's issue price per share to 33 sen each ex-bonus.
The theoretical revised prices, however, were not reflected in the ranking table on IPOs published by StarBiz on Jan 3.
In Borneo Aqua's case, its closing price of 26.5 sen as at Dec 30 was 20% lower than its IPO price since the company's listing, and not 73.2% as published.
YGL Convergence's IPO price was halved to 45 sen from 90 sen with the company's 1-for-1 bonus issue upon its listing in mid-July last year.
The stock ended 2005 at 37.5 sen, or 17% lower, against its reference price of 45 sen.
Other recent additions to Mesdaq that incorporated free shares as part of their listing exercises ended the year on a stronger note after adjusting the share splits.
Key West advanced 10% to 27 sen, Nextnation surged 32% to 51.5 sen, N2N was up 43% to 58.5 sen, Vitrox gained 20% to 43 sen and MNC Wireless ended 82% higher at 58.5 sen.
YGL : [Stock Watch] [News] NEXTNAT : [Stock Watch] [News] KEYWEST : [Stock Watch] [News] VITROX : [Stock Watch] [News] BAHVEST : [Stock Watch] [News] MNC : [Stock Watch] [News] N2N : [Stock Watch] [News]
For latest MSEB indices, charts and other information click here
