Hong Seng announces 1-for-1 bonus issue

KUALA LUMPUR: Hong Seng Consolidated Bhd has proposed to undertake a bonus issue of up to approximately 3.52 billion new ordinary shares on the basis of one bonus share for every one existing Hong Seng share held.

“The Board intends to undertake the proposed bonus Issue to reward the existing shareholders of the company for their loyalty and continuing support as the proposed bonus issue will increase the number of shares held by the shareholders with no cash outlay by them, while maintaining their percentage of shareholdings in the company,” Hong Seng said in a filing with Bursa Malaysia.

In addition, Hong Seng said the proposed bonus issue would provide its existing shareholders with greater equity participation as well as enhance the marketability and trading liquidity of its shares.

The actual number of bonus shares to be issued pursuant to the proposed bonus issue will be based on the total number of Hong Seng shares in issue on the entitlement date, which will be determined and announced by the board at a later date.

Hong Seng expects to complete the proposed bonus issue by the first half of 2022, after obtaining shareholders’ approvals.