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Mieco Chipboard proposes 3-for-5 bonus issue; share price hovers near 3-year high

KUALA LUMPUR (March 2): Mieco Chipboard Bhd has proposed a 3-for-5 bonus issue which entails the issuance of 315 million shares in the company, it said today.

As at the last practicable date prior to the announcement, Mieco had an issued share capital of 525 million shares amounting to RM215.87 million.

The particle board manufacturer had no treasury shares or any outstanding convertible securities as at the latest practicable date prior to the announcement, it said.

The bonus issue will be undertaken without any capitalisation and will be issued as fully paid at nil consideration, it added.

Mieco expects the bonus issue to be completed in the second quarter of 2021.

Shares of Mieco Chipboard are currently trading near their three-year high, on the back of a swing back to profitability in the third and fourth quarters of the last financial year ended Dec 31, 2020 (FY20), at levels last seen in 2016-2017.

This was due to an overwhelming demand particularly in the US, which resulted in chipboard prices surging in the second half of last year.

The stock price fell 2.5 sen or 2.89% to 84 sen per share, valuing the group at RM441 million.

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