PETALING JAYA: Top Glove Corp Bhd has proposed a two-for-one bonus issue, which will see up to 5.48 billion bonus shares issued, aimed at rewarding its shareholders and allowing them to have greater participation in the equity of the group, in terms of the number of shares, while retaining their percentage of equity interest held.
Executive chairman Tan Sri Lim Wee Chai said that adding and creating value for its shareholders has always been a business priority, and the proposed bonus issue will enable it to fulfil its commitment to shareholders.
“This will also enable us to increase the number of shares in issue, which is expected to create more liquidity and marketability for Top Glove shares,” Lim said in a statement.
Top Glove’s balance sheet remains robust, with a net cash position of RM284 million and shareholders’ equity of RM4.7 billion as at the third quarter ended May 31, 2020.
The proposed bonus issue is subject to shareholders’ approval at an EGM to be convened later, but is expected to be completed by the third quarter of the year.
The company’s last bonus issue was completed in October 2018, when its share price reached about RM11.50. The company has completed seven bonus issues and one share split since its listing in 2001.
Meanwhile, in a separate exchange filing, Supermax Corp Bhd proposed a one-for-one bonus issue of up to 1.36 billion shares.
The exercise is subject to approvals from Bursa Malaysia Securities and shareholders at an EGM to be convened.
Barring any unforeseen circumstances and subject to all required approvals being obtained, the exercise is expected to be completed by end of fourth quarter of 2020.
