Glomac plans 1-for-10 bonus issue

KUALA LUMPUR (Aug 2): Glomac Bhd is proposing to undertake a bonus issue on the basis of one bonus share for every 10 Glomac shares held to reward existing shareholders and improve liquidity and marketability of its shares.

In a filing with Bursa Malaysia, Glomac said the exercise will involve the issuance of up to 74.82 million shares to shareholders whose names are listed in the Record of Depositors on a date to be fixed later.

For illustration, it said the theoretical ex-bonus share price of Glomac shares will be 57 sen, if based on the five-day volume weighted average price of Glomac shares up to July 21, of 63 sen.

As at July 21, 2017, Glomac said it had an issued share capital of RM363.91 million, comprising 727.82 million shares, including 4.85 million which are held as treasury shares.

On completion of the exercise, Glomac said its share capital could be enlarged to as little as RM395.79 million with 795.27 million shares, or as much as RM419.75 million with 822.99 million shares.

According to the group, the proposed bonus issuance will result in a corresponding dilution in its earnings per share, as a result of the increase in number of shares it will issue under the exercise, although it will not have any material effect on its earnings for the financial year ending April 30, 2018 (FY18).

It expects the exercise to be completed by the fourth quarter of 2017.

Glomac shares settled unchanged at 65 sen today, giving it a market capitalisation of RM469.92 million. — theedgemarkets.com

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