SOP (5126) Sarawak Oil Palms proposes one-for-two bonus issue

SOP (5126) Sarawak Oil Palms proposes one-for-two bonus issue

KUALA LUMPUR (March 7): Sarawak Oil Palms Bhd (SOPB) has proposed a bonus issue of up to 303.14 million shares on the basis of one bonus share for every two existing shares held, on an entitlement date to be announced later.

SOPB said based on the lowest daily volume-weighted average market price of its shares during the past three-month period of RM3.3926, the theoretical ex-bonus price would be RM2.2617.

The company, which is engaged in the cultivation of oil palms and the operation of palm oil mills, said the proposed exercise is to reward its shareholders for their continuous support and encourage the trading liquidity of the shares on the Main Market of Bursa Securities at a lower adjusted trading price as well as increased number of shares in issue without affecting the size of the company’s market capitalisation.

“The proposed bonus issue of shares is expected to be completed by the third quarter of 2022 and is not expected to have any material effect on the consolidated earnings of the group for FYE Dec 31, 2022. However, the consolidated EPS [earnings per share] of the group may be diluted as a result of the increase in the number of SOPB shares pursuant to the issuance of the bonus shares,” the group said in a bourse filing.

At the time of writing, shares of SOPB were trading down 22 sen or 3.45% at RM6.16, for a market capitalisation of RM3.52 billion. The stock has risen 73.03% year-to-date from RM3.56.

http://www.theedgemarkets.com/article/sarawak-oil-palms-proposes-onefortwo-bonus-issue