Quick take: Kossan rises 4% on bonus issue plan

KUALA LUMPUR: Kossan Rubber Industries Bhd rose over 4% in early trade Monday as the company’s shareholders approved its one-for-one bonus issue.

The glovemaker, the top gainer on Bursa Malaysia, rose 4.2%, or 58 sen to RM14.38 with 1.5 million shares traded.

Kossan said 99.99% of the shareholders present at the company's extraordinary general meeting voted in favour of the bonus issue.

The ex-date for the bonus issue is Oct 9 while the entitlement date is Oct 12.

The bonus issue was announced by the group on Aug 25, in conjunction with the release of its second-quarter results. It entails the issuance of 1.28 billion shares, which will enlarge the group's issued share capital to 2.56 billion shares.

Kossan’s net profit in the three-month ended June 30 soared to RM131mil compared with RM55.9mil made a year earlier. Its revenue swelled to RM701mil from RM550mil previously.

Demand for medical gloves had been surging since early this year due to the Covid-19 pandemic.