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 announcements.
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.
