HONGSENG (0041): HONG SENG CONSOLIDATED BERHAD proposes 1-for-1 bonus issue to reward shareholders

HONGSENG (0041): HONG SENG CONSOLIDATED BERHAD proposes 1-for-1 bonus issue to reward shareholders

KUALA LUMPUR (Dec 23): Hong Seng Consolidated Bhd has proposed a bonus issue of approximately 3.52 billion new shares on the basis of one bonus share for every existing one Hong Seng share held by its shareholders.

Hong Seng said the bonus issue is proposed to reward its existing shareholders for their loyalty and continuous support.

This comes after Hong Seng's diversification into the healthcare, glove and nitrile butadiene latex (NBL) manufacturing over the past year which the company said has proven to be timely for it to capture the rise in demand for healthcare products and services.

"Moving forward, Hong Seng's other business expansions which include gloves and NBL production are expected to grow concurrently with the healthcare segment to provide multiple streams of income to the group," the group wrote in a statement.

The company highlighted that the exercise will provide existing shareholders with greater equity participation while maintaining their percentage of equity interest and enhance the marketability and trading liquidity of its shares as well as provide opportunity for greater participation from a broader range of investors.

The actual number of bonus shares to be issued pursuant to the corporate exercise will be based on the total number of Hong Seng issued shares on the entitlement date which will be determined and announced by the company at a later date. It said that it expects to complete the bonus issue by the first half of 2022 after obtaining its shareholders' approval.

Hong Seng was up 11 sen or 4.14% on Thursday to close at RM2.77, giving the company a market capitalisation of RM7.07 billion. Year to date, the company's share price has risen 422.64% from 53 sen at the beginning of the year.

http://www.theedgemarkets.com/article/hong-seng-proposes-1for1-bonus-issue-reward-shareholders