Though the announcement of dividend and bonus issue
can create some positive sentiment in the stock for short-term, depressed pricing and high finance cost will continue to pressurize earnings where we expect FY20 LPS at PkR3.57.
The Board in its meeting held on July 13, 2018 has considered, approved and recommended a bonus issue
of one equity share for every equity share held and a stock dividend of one American Depositary Share (ADS) for every ADS held, as on a record date to be determined.
In a statement to Bursa Malaysia today, Top Glove said it plans to implement the bonus issue
on a one-for-one basis.
The market also seems to have rewarded the companies, with around 31 per cent of them witnessing double-digit growth in market cap after the bonus issues
. "Bonus issue
brings a higher trust factor in a company - both in terms of the credibility of its cash flows and the intent of the promoters to share the same with shareholders.
The bonus issue
of 50,000,000 new shares equates to BD5 million.
The board has also proposed a bonus issue
of 10 per cent - one additional share for every 10 shares held, amounting to BD9.41 million.
IN A BONUS issue
, shareholders get extra shares for free.
Qatar Insurance had gone down on account of capital increase plans, apart from dividend and bonus issues
. Qatar General Insurance had also gone down after dividend and bonus issue
Mr Bimbi made exact points on the bonus issue
and the rent strategy that Mr Fisher does not directly address.
lawmakers seized on the bonus issue
last month, citing the estimated $1.6 billion shortfall between the brokerage's assets and what it owes customers as a reason that the distribution of any bonus money should be blocked.
FGB's capital will rise to 3 billion dirhams ($816.8 million) from 1.5 billion dirhams after the bonus issue
, the bank said in a bourse filing.