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KUALA LUMPUR (December 8): Public Bank Bhd today announced a bonus issue of up to 15.53 billion shares based on four new shares for each existing unit to reward shareholders and improve trading liquidity of the shares from the bank.
The bond issue will result in stocks becoming more affordable and attracting a broader pool of investors, Malaysia’s second-largest lender by market capitalization said in a filing with the stock exchange.
Public Bank noted that the exercise will increase its number of shares but not the value of share capital.
Therefore, after the completion of the bond issue, the bank’s registered capital will remain at RM 9.42 billion, but the total number of shares will increase to 19.41 billion from 3.88 billion shares by 30 of November.
Based on the five-day volume weighted average price (VWAP) of the stock through November 30 of $ 17,965, the notional price of the share without bonus is $ 3,593.
On the other hand, if calculated on the basis of the three-month VWAP of RM16.7583, the notional price without bonus of the shares will amount to RM3.3517 each.
“The proposed bond issue will have no effect on consolidated earnings for the financial year ending December 31, 2020, except for possible dilution in EPS (earnings per share) as a result of the increase in the number of Bank shares. Public in emission. “, Said the bank.
However, assuming that the net profits of the Public Bank remain unchanged, the EPS will be proportionally diluted as a result of the increase in the number of shares in issue, once the bond issue is completed.
The bank expects the bond issue to be completed in the first quarter of 2021.
Public Bank shares closed 14 sen or 0.75% lower at RM18.46, valuing the group at RM71.66 billion. From this year’s low of RM12.66, the counter has risen as much as 45.8%. It has almost recouped most of its losses, but is still down 7.24% so far this year.
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