PBBANK (1295): PUBLIC BANK BHD announces four-for-one bonus issue
KUALA LUMPUR (Dec 8): Public Bank Bhd today announced a bonus issue of up to 15.53 billion shares on the basis of four new shares for every one existing unit held to reward shareholders and to enhance the trading liquidity of the bank's shares.
The bonus issue will result in the shares becoming more affordable and appeal to a wider group of investors, said Malaysia's second largest lender by market capitalisation in a filing with the stock exchange.
Public Bank noted that the exercise will increase its number of shares but not the value of the share capital.
Thus, upon completion of the bonus issue, the bank's share capital will remain at RM9.42 billion but the total number of shares will rise to 19.41 billion from 3.88 billion shares as of Nov 30.
Based on the five-day volume weighted average price (VWAP) of shares up to Nov 30 of RM17.965, the theoretical ex-bonus share price is RM3.593.
On the other hand, if calculated based on the three-month VWAP of RM16.7583, the theoretical ex-bonus price of the shares will amount to RM3.3517 apiece.
"The proposed bonus issue will not have any effect on the consolidated earnings for the financial year ending Dec 31, 2020 save for the potential dilution in EPS (earnings per share) as a result of the increase in the number of Public Bank shares in issue," the bank said.
However, assuming Public Bank's net earnings remain unchanged, the EPS will be proportionally diluted as a result of the increase in the number of shares in issue, upon the completion of the bonus issue.
The bank expects the bonus issue to be completed by the first quarter of 2021.
Shares in Public Bank closed 14 sen or 0.75% lower at RM18.46, valuing the group at RM71.66 billion. From this year's trough of RM12.66, the counter has risen as much as 45.8%. It has nearly recouped most of its losses but is still down 7.24% year-to-date.
http://www.theedgemarkets.com/article/public-bank-announces-fourforone-bonus-issue
