Hot Stock LTKM jumps 11% on bonus issue

by **Cals** Wed 08 Apr 2015, 20:06

Hot Stock
LTKM jumps 11% on bonus issue

By Chester Tay / theedgemarkets.com | April 8, 2015 : 10:56 AM MYT

KUALA LUMPUR (Apr 8): [size=14]LTKM Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)’s share price traded as high as RM6.70, a leap of 66 sen or 10.93% in less than an hour after market open, after the group announced a one-for-two bonus issue yesterday.

As at 10:16am in the morning session, the eggs producer’s shares were trading at RM6.56, up 56 sen or 9.27% from the previous closing price of RM6.04.

LTKM (fundamental: 3.0; valuation: 2.4) yesterday proposed a bonus issue of 21.68 million new ordinary shares, with the entitlement date to be determined later.

On top of that, the group also proposed a share split involving the subdivision of every one existing LTKM share held into two new ordinary shares of 50 sen each.

“The proposed share split is expected to enhance the marketability and trading liquidity of LTKM’s ordinary shares as a result of the increase in the number of shares in issue,” the group said.

LTKM also said the exercise would result in an adjustment on its share price to be more affordable, which is expected to appeal to a wider group of public shareholders.

Barring unforeseen circumstances, LTKM’s board of directors expects the corporate exercises to be completed by second half of 2015.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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