KUALA LUMPUR: Top Glove Corp Bhd plans to undertake a bonus issue of up to 5.48 billion shares as a reward to its shareholders.
The issuance is 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 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 percentage of equity interest held," Top Glove said today.
Executive chairman Tan Sri Dr Lim Wee Chai said adding and creating value for its shareholders has always been a foremost business priority.
"The proposed two-for-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," Lim added.
Top Glove said its balance sheet remained robust, with a net cash position of RM284 million and a shareholders' equity of RM4.7 billion as at the third quarter ended May 31 2020.
The proposed bonus issue is subject to shareholder approval during an extraordinary general meeting 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 seven bonus issues and one share split since its listing in 2001.