KUALA LUMPUR: Cocoaland Holdings Bhd’s shares rose to its highest in about 16 months after proposing a one-for-one bonus issue.
The confectionery manufacturer rose 13.66%, or 25 sen to RM2.08, its highest since November 2019 at 9.12am. It is currently the top gainer on Bursa Malaysia.
Cocoland has proposed a bonus issue of 228.8 million shares on the basis of one bonus share for every one existing share held on a date to be announced later.
It said the bonus issue served to reward the shareholders for their loyalty and continued support to the group.
Cocoaland added that the proposed bonus issue also enables the existing shareholders to have greater participation in the equity of the company, encourages trading liquidity and marketability of Cocoaland shares on the Main Market via a larger base, and maintains the company’s reserves and total net asset.
The proposed bonus issue is expected to be completed by the second quarter of 2021.
Cocoaland said the proposed bonus issue is not expected to have any material effect on the earnings of the group.