Title: Ever Glory United Holdings Proposes Bonus Issue to Boost Shareholder Value
Ever Glory United Holdings Limited (the “Company”) has announced a proposed bonus issue of up to 86,635,783 new ordinary shares in the capital of the Company (the “Bonus Shares”). The Bonus Shares will be issued on the basis of one (1) Bonus Share for every three (3) existing ordinary shares held by shareholders of the Company (the “Shareholders”) as of the record date to be determined by the Directors (the “Proposed Bonus Issue”).
Key Highlights:
The Bonus Shares will be issued as fully paid at nil consideration to Shareholders, and will rank pari passu with the existing ordinary shares in the capital of the Company, except that they will not be entitled to any dividends, rights, allotments or other distributions with a record date before the Bonus Shares are issued. 1 – 2
The Proposed Bonus Issue will increase the total number of issued shares by approximately 33.33%, from 259,907,349 shares to 346,543,132 shares (assuming no other changes to the share capital). This is expected to improve the trading liquidity of the Company’s shares. 1
The Bonus Shares will be issued under the general mandate obtained from Shareholders at the Company’s annual general meeting on 29 April 2024. The Company has confirmed that the proposed issuance of Bonus Shares will fall within the limits of the general mandate. 2
The Proposed Bonus Issue is subject to approval from the Singapore Exchange Securities Trading Limited (SGX-ST) for the listing and quotation of the Bonus Shares on the Catalist board. The Company will make the necessary application and announcement upon receiving the listing and quotation notice. 3
Importantly, the Bonus Shares will not be entitled to the proposed tax-exempt (one-tier) final dividend of S$0.0025 per share, which was previously announced by the Company on 28 February 2025. 2
In connection with the Company’s recent issuance of convertible bonds, the conversion price of the bonds will be adjusted from S$0.40 to S$0.30 per share to account for the Proposed Bonus Issue. This will result in an additional 4,166,657 shares being issuable upon full conversion of the bonds. 4
The Proposed Bonus Issue is intended to acknowledge and reward Shareholders’ continued loyalty and support, as well as to encourage trading liquidity and greater participation by investors. Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares and to consult their stockbrokers, bank managers, solicitors, or other professional advisers if they have any doubts about the actions they should take.
Disclaimer: This article is for informational purposes only and does not constitute any offer, solicitation, or recommendation to subscribe for or purchase any securities. Readers should conduct their own due diligence and consult their financial advisors before making any investment decisions.
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