FREIGHT (7210): FREIGHT MANAGEMENT HOLDINGS BHD proposes one-for-one bonus issue
KUALA LUMPUR (April 19): Freight Management Holdings Bhd has proposed a bonus issue of 279.22 million shares on the basis of one bonus share for every share held on an entitlement date to be announced later.
In a filing with Bursa Malaysia, the freight services provider said the bonus issue serves to improve the marketability and trading liquidity of its shares on lower trading price which would attract a broader range of investors to participate.
"For illustration purposes, based on the daily VWAMP (volume weighted average market price) of Freight Management shares during the three-month period up to and including April 19, 2021 (being the date of this announcement) which ranged between RM1.01 and RM1.69, the theoretical ex-bonus share price of the shares ranged between RM0.51 and RM0.85," said the company.
Save for the dilution in earnings per share, it said the proposed bonus issue is not expected to have any material effect on the group"s earnings for the financial year ended June 30, 2021.
Barring any unforeseen circumstances, the proposed bonus issue is expected to be completed by the second quarter of 2021.
The company's share price went up six sen or 4.32% to RM1.45 today, bringing it a market capitalisation of RM405 million. There were 1.77 million shares traded.
Over the past one year, the counter has grown three times from 48 sen.