Top Glove Corporation Bhd (Top Glove) has proposed to undertake a bonus issue on the basis of two bonus shares for every one existing Top Glove share held, at an entitlement date to be determined and announced later.
The exercise will see up to 5.48 billion bonus shares issued to shareholders of the company, whose names appear in the record of depositors of the Company on the entitlement date.
The corporate exercise is 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 tpercentage of equity interest held.
Lim Wee Chai, Executive Chairman of Top Glove Corporation Bhd remarked, “Adding and creating value for our shareholders has always been a foremost business priority, and the proposed twofor-one bonus issue will enable us to fulfil our commitment to our loyal 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”, added. Top Glove’s balance sheet remains robust, with a net cash position of RM284 million and a shareholders’ equity of RM4.7 billion as at the latest 3QFY2020 ended 31 May 2020.
“I would like to take this opportunity to thank the shareholders for their confidence and continuous support. Rest assured, we will continue to work harder, smarter and faster so we continue to delight our shareholders as well as our other stakeholders,” Tan Sri Dr Lim concluded. The proposed bonus issue is subject to shareholder approval during an extraordinary general meeting (EGM) to be convened later.
The company’s last bonus issue exercise was completed in October 2018, when its share price had reached about RM11.50. The company has completed 7 bonus issues and 1 share split since its listing in 2001.