HEVEA (5095) - HeveaBoard proposes 1-to-4 share split
April 30, 2015 : 8:14 PM MYT
KUALA LUMPUR (Apr 30): Particleboard maker HeveaBoard Bhd has proposed a 1-to-4 share split of every one of its existing ordinary share of RM1, held on an entitlement date to be determined later, into four shares of 25 sen each.
HeveaBoard (fundamental: 1.3, valuation: 1.4) said the proposed share split, to be made within the next one month, is expected to “enhance the marketability and trading liquidity” of the shares of the company.
It further noted that the proposed corporate exercise will result in an adjustment to the market price of the ordinary shares of HeveaBoard, making the shares more affordable to appeal to a wider group of public shareholders and/or investors to participate in the company’s growth.
The company’s issued and paid-up share capital currently stands at RM99.45 million, comprising 99.45 million shares. The company has 42.66 million outstanding warrants prior now.
Assuming the full exercise of the warrants prior to the entitlement date, the enlarged issued and paid-up share capital of the company shall be RM142.11 million, comprising 568.43 subdivided shares, upon completion of the proposed share split.
Hence, the company is also proposing an amendment to the company’s memorandum and articles of association, to accommodate the soon-to-be enlarged share capital pursuant to the proposed share split.
RHB Investment Bank has been appointed as the Principal Adviser to the company, in respect of the proposals.
The company, which manufactures, trades and distributes a wide range of particleboards, said the proposed share split will not have any impact on its earnings for financial year ending Dec 31, 2015, but the earnings per share (EPS) will be reduced proportionately.
HeveaBoard shares closed 5 sen or 1.72% higher at RM2.95 today, with a market capitalisation of RM281.9 million.
http://www.theedgemarkets.com
April 30, 2015 : 8:14 PM MYT
KUALA LUMPUR (Apr 30): Particleboard maker HeveaBoard Bhd has proposed a 1-to-4 share split of every one of its existing ordinary share of RM1, held on an entitlement date to be determined later, into four shares of 25 sen each.
HeveaBoard (fundamental: 1.3, valuation: 1.4) said the proposed share split, to be made within the next one month, is expected to “enhance the marketability and trading liquidity” of the shares of the company.
It further noted that the proposed corporate exercise will result in an adjustment to the market price of the ordinary shares of HeveaBoard, making the shares more affordable to appeal to a wider group of public shareholders and/or investors to participate in the company’s growth.
The company’s issued and paid-up share capital currently stands at RM99.45 million, comprising 99.45 million shares. The company has 42.66 million outstanding warrants prior now.
Assuming the full exercise of the warrants prior to the entitlement date, the enlarged issued and paid-up share capital of the company shall be RM142.11 million, comprising 568.43 subdivided shares, upon completion of the proposed share split.
Hence, the company is also proposing an amendment to the company’s memorandum and articles of association, to accommodate the soon-to-be enlarged share capital pursuant to the proposed share split.
RHB Investment Bank has been appointed as the Principal Adviser to the company, in respect of the proposals.
The company, which manufactures, trades and distributes a wide range of particleboards, said the proposed share split will not have any impact on its earnings for financial year ending Dec 31, 2015, but the earnings per share (EPS) will be reduced proportionately.
HeveaBoard shares closed 5 sen or 1.72% higher at RM2.95 today, with a market capitalisation of RM281.9 million.
http://www.theedgemarkets.com
