Techbond proposes 5-for-4 bonus issue
KUALA LUMPUR (Feb 5): Techbond Group Bhd has proposed to undertake a bonus issue of up to 431.25 million new shares on the basis of five bonus shares for every four existing shares.
The entitlement date of the bonus issue shares would be determined later, the global industrial adhesive manufacturer said in a statement today.
Managing director Lee Seng Thye said the bonus issue would potentially improve the trading liquidity of Techbond’s shares without affecting the company’s market capitalisation.
“This will also encourage greater participation by investors, as well as potentially broadening the shareholder base,” he said.
Barring any unforeseen circumstances and subject to approvals by the authorities, the proposed bonus issue is expected to be completed in the first quarter of this year.
“With this exercise, we expect the liquidity of our shares to improve and this will encourage greater participation by investors.
“In turn, this would lead to a widening of the shareholder base,“ he said.
Lee said orders from customers remained robust, especially from the overseas markets.
“We are seeing sustained strong demand from the woodworking industry, with healthy growth in other areas as well, such as the mattress and packaging sectors,” he said.
Meanwhile, he said, the company was making good progress at its new factory complex in Vietnam.
“We are currently conducting a trial run for our machinery at our VSIP2 (Vietnam Singapore Industrial Park II-A) factory complex,” he said.
The company expects to begin mass production, once it completes the trial run and pass the plant acceptance test.
http://www.theedgemarkets.com/article/techbond-proposes-5for4-bonus-issue
