KUALA LUMPUR: Tiong Nam Logistics Holdings Bhd today announces a share dividend to reward its shareholders, on the basis of one treasury share for every 40 existing shares held.
The share dividend will involve the distribution of up to 12.9 million treasury shares to all shareholders of Tiong Nam.
The ex-date for the dividend is Nov 26, and the shares will be credited on Dec 18.
Managing director Ong Yoong Nyock said the share dividend distribution allows Tiong Nam to reward its loyal shareholders and provide greater participation in its future growth.
"We are enhancing our logistics and warehousing infrastructure across Malaysia and Singapore to meet the rising demand for integrated logistics solutions. As we aim for significant revenue growth for this segment in FY2025, our ongoing expansions will boost our capacity to better serve our customers and capture new opportunities.
"We are also further developing our landbank through our property development segment. These initiatives will contribute to long-term value to our shareholders,' Ong said in a statement.
Tiong Nam is expanding its integrated logistics and warehousing network to meet the increasing demand for integrated logistics solutions.
It is undertaking capital expenditure of an estimated RM460 million over the next two financial years ending March 31 2025 (FY2025) and 2026 (FY2026), primarily for warehouse expansions.
As at June 30 this year, the company is constructing four new warehouses in Johor Bahru, Kedah, Sabah and Singapore, with total capacity of 1.3 million square feet (sq ft) to be operational in stages between FY2025 and FY2026.
Tiong Nam plans to build four more warehouses in Johor Bahru, Selangor and Kedah, with a total capacity of 0.7 million sq ft.
Construction of these warehouses is expected to commence in FY2025 and be completed in phases until FY2026.
The ongoing and planned expansions will boost Tiong Nam's total warehousing capacity by 26.0 per cent to 9.7 million sq ft in FY2026, from 7.7 million sq ft as at June 30 2024.