MyEG proposes 1-for-1 bonus issue to reward shareholders

by **Cals** Sun 27 Sep 2015, 17:27

MyEG proposes 1-for-1 bonus issue to reward shareholders

By Ahmad Naqib Idris / theedgemarkets.com | September 25, 2015 : 7:22 PM MYT

KUALA LUMPUR (Sept 25): [size=16]MyEG Services Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 2.30) has proposed a bonus issue of up to 1.2 billion new shares to reward its shareholders, on the basis of one bonus share for every one share held.

In its filing with the bourse, the company said it aims to enlarge its share base, encourage trading liquidity and enlarge the number of shares held by its existing shareholders through the exercise.

"The proposed bonus issue is not expected to have any material effect on the consolidated earnings of MyEG for the financial year ending June 30, 2016.

"However, the consolidated earnings per share (EPS) of MyEG is expected to reduce proportionally as a result of the additional MyEG shares issued pursuant to the proposed bonus issue," said the company.

MyEG aims to complete the exercise by the first quarter of 2016, barring any unforeseen circumstances.

MyEG's shares rose four sen or 1.5% to close at RM2.72, bringing its market capitalisation to RM3.21 billion.

(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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