Top Glove has proposed a two-for-one bonus issue involving up to 5.48 billion new shares, while Supermax plans to undertake a one-for-one bonus issue of up to 1.36 billion new Supermax shares.
In a filing with Bursa Malaysia, Top Glove said the proposed bonus issue would reward the company’s existing shareholders, increase the number of shares held by shareholders and potentially enhance the marketability and trading liquidity of the stock.
On July 6, being the last practicable date prior to the announcement, the issued share capital of the company was RM1.59bil comprising 2.69 billion Top Glove shares, including 661,600 treasury shares.
“The board has resolved that the bonus shares will be issued as fully paid shares at nil consideration, without any capitalisation from the company’s reserves.
“The proposed bonus issue will increase the number of Top Glove shares in issue but will not increase the value of the issued share capital of the company, ” it said.
Meanwhile, Supermax is of the view that the proposed bonus issue of shares is an appropriate avenue to reward its shareholders while increasing the group’s share base.
“This will encourage trading liquidity and marketability of Supermax shares on the Main Market of Bursa Malaysia, which will promote diversity in investors’ profiles to participate in the equity of the company.
“Additionally, the proposed bonus issue will maintain Supermax’s reserves and total net asset, ” said Supermax.
Top Glove’s bonus issue is expected to be completed in the third quarter of 2020, while Supermax’s proposal is expected to be completed by the end of the fourth quarter this year.
The share prices of Top Glove and Supermax have spiked fourfold year-to-date as the Covid-19 outbreak created a surge in demand for glove products, leading to record earnings performance.
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