Ancom Nylex gets shareholders' nod for 3-for-1 share split

KUALA LUMPUR: Ancom Nylex Bhd has received approval from shareholders at an extraordinary general meeting for the proposed share split involving the subdivision of one share into three shares.

The integrated chemicals group said the entitlement date of the proposed share split will be announced later.

Barring any unforeseen circumstances, the exercise is expected to be completed in the second quarter of 2022.

Managing director and group CEO Lee Cheun Wei said the exercise is carried out with shareholders’ interests in mind as it may result in the improvement of trading liquidity.

“In addition, the narrower bid-ask spread also means lower price volatility associated with the stock moving forward.

“Furthermore, the share price will be more affordable and accessible to a wider group of public shareholders and investors,” he said in a statement.

Lee said on the business front, the outlook for the agricultural chemicals segment remains bright.

“We continue to receive robust orders for herbicides from local palm oil farmers as they seek to maximise crop yield given the elevated crude palm oil prices. Beyond Malaysia, our key overseas customers have provided strong order visibility for the year ahead as global food prices soar.

“On the other hand, the industrial chemicals segment is also anticipated to do well with petrochemical products currently trading at higher than their historical averages.

“The group is reaping the maximum benefit of the current uptrend following the acquisition of the remaining 50% stake of the industrial chemicals business earlier this year,” Lee said.