PETALING JAYA: Pentamaster Corp Bhd has proposed a bonus issue of one free share for every two existing shares of up to 158.3 million shares.
In a filing with Bursa Malaysia, the Penang-based semiconductor firm said the proposed bonus shares were to reward shareholders and enable them to have greater participation in the group’s equity while maintaining their percentage of equity interest.
Shares in Pentamaster closed two sen lower to RM3.61 yesterday. On a year-to-date basis, the stock has risen more than 31%, giving it a market capitalisation of RM1.14bil.
Pentamaster said the proposed bonus issue is not expected to have any effect on the group’s earnings for the financial year ending Dec 31, 2019 (FY19).
“However, there will be a corresponding dilution in the earnings per share of Pentamaster for FY19 as a result of the increase in the number of shares in issue arising from the proposed bonus issue,” it said.
Barring any unforeseen circumstances, the group expects the proposed bonus issue to be completed before the end of July.
For FY18, Pentamaster’s net profit jumped almost 59% to RM57.12mil from RM35.97mil a year earlier, thanks to higher demand from both the automated equipment and manufacturing solution segments.
Revenue for the period rose 49% to RM422.2mil compared to RM284.2mil previously.
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