KAREX (5247) - Karex proposes 1-for-2 bonus share issuance

KUALA LUMPUR (Feb 24): Karex Bhd, which today reported a 55.7% jump in its net profit for its second quarter ended Dec 31, 2015, plans to issue one bonus share for every two existing Karex shares held at an entitlement date to be fixed and announced later, to reward shareholders.

In total, the world’s largest condom maker could be issuing 334.13 million new bonus shares. Currently, Karex’ share base comprises 668.25 million shares.

At a par value of 25 sen per share, Karex could spend up to RM83.53 million from its share premium to fund the bonus issuance, which will trim its share premium to RM31.39 million, following the exercise.

In a statement, Karex chief executive officer Goh Miah Kiat said the bonus share issuance will allow existing shareholders to maintain their equity stake in the group. The bigger share base may also eventually allow Karex’s shares to be priced more affordably and in turn raise its marketability and tradeability on the open market.

“We are very thankful to have very supportive shareholders and we would like to take this opportunity to thank them for their unwavering support through our bonus issue exercise.”

Goh said the group intends to complete the bonus share issuance by the second quarter of this year.
 
http://www.theedgemarkets.com/my/article/karex-proposes-1-2-bonus-share-issuance