Hot Stock China Automobile Parts rebounds 9.8% after bonus issue announcement

by **Cals** Mon 13 Jul 2015, 18:43

Hot Stock
China Automobile Parts rebounds 9.8% after bonus issue announcement

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By Ahmad Naqib Idris / theedgemarkets.com | July 13, 2015 : 12:54 PM MYT

KUALA LUMPUR (July 13): [size=14]China Automobile Parts Holdings Ltd (CAP) rose as much as 9.8% today and was among top actives, after the group proposed a nine-for-ten bonus issue of shares to reward its shareholders.

At 12.30pm, the counter rose 1.5 sen or 4.9% to 32 sen per share, with some 19.8 million shares done, putting itself among the most actively-traded stocks on the exchange. Its market capitalisation was RM186.47 million.

CAP earlier gained as much as 3 sen or 9.8% to reach a high of 33.5 sen.

In an announcement last Friday (July 10), the company proposed a bonus issue of up to 810 million new shares, on the basis of nine bonus shares for every ten existing shares held.

CAP said the proposed bonus issue was “to reward existing shareholders for their continuous support by enabling them to have greater participation in the company’s equity in terms of the number of shares held, while maintaining their percentage of equity interest in the company”.

It also proposed an increase in the authorised share capital of the company to US$500 million of five billion shares, from US$100 million of one billion shares.

Prior to the announcement of the bonus issue, it is noted that the counter saw a seven day losing streak, closing at a low of 30.5 sen on July 10, from its closing of 35 sen on July 1.

Year-to-date, CAP has appreciated 18.52%, outperforming the KLCI, which fell 2.69% in the same period.

(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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