Proposed Bonus Issue by Malaysia Smelting Corporation Bhd

Title: “Malaysia Smelting Corporation Announces Bonus Issue: A Shareholder’s Delight”
Malaysia Smelting Corporation Bhd (MSC), a leading tin smelting company, has announced a proposed bonus issue that is set to reward its existing shareholders. This move is expected to enhance the trading liquidity and affordability of MSC shares, potentially attracting more investors and broadening the company’s shareholder base.
Key Highlights:
Bonus Issue Ratio: MSC will issue 1 new bonus share for every 1 existing share held by shareholders, resulting in a total of 420,000,000 new bonus shares. 1
No Capitalization of Reserves: The bonus shares will be issued as fully paid, at nil consideration, and without any capitalization of the company’s reserves. [[2.2]]
Ranking of Bonus Shares: The bonus shares will rank pari passu (on equal footing) with the existing shares, except that they will not be entitled to any dividends, rights, allotments, or other distributions where the entitlement date precedes the allotment of the bonus shares. [[2.3]]
Listing and Quotation: The bonus shares will be listed and quoted on the Main Market of Bursa Malaysia Securities Berhad and the Main Board of the Singapore Exchange Securities Trading Limited. [[2.4]]
Theoretical Ex-Bonus Price (TEBP): Based on the 5-day volume-weighted average price (VWAP) and the lowest VWAP during the past 3-month period, the TEBP of MSC shares is RM1.1274 and RM1.0331, respectively. [[2.1]]
No Material Impact on Earnings: The bonus issue is not expected to have a material effect on the earnings of the MSC Group for the financial year ending 31 December 2025, although the earnings per share (EPS) will be proportionately diluted. [[4.4]]
Potential Impact on Shareholders: The bonus issue is a positive development for MSC shareholders, as it will increase the number of shares they hold without any additional cost. This may enhance the trading liquidity and affordability of the shares, potentially attracting more investors and broadening the shareholder base. However, the TEBP of the shares will be adjusted downward, which may temporarily affect the market value of the shares.
Disclaimer: This article is for informational purposes only and does not constitute a recommendation to buy, sell, or hold any securities of Malaysia Smelting Corporation Bhd. Investors should conduct their own research and consult with their financial advisors before making any investment decisions.

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