KUALA LUMPUR (May 6): Favelle Favco Bhd and its major shareholder Muhibbah Engineering (M) Bhd rose on Friday (May 6) morning after the former declared its highest-ever dividend of 85 sen for the financial year ending Dec 31, 2022 (FY22).
Favelle Favco, which was the second top gainer in terms of value, gained as much as 70 sen or 27.13% to RM3.28, the highest since September 2014.
At 9.55am, the counter had pared some gains at RM3.12, still up 54 sen or 20.93%. Year to date, it has added 30%.
Meanwhile, Muhibbah Engineering increased by as much as 5.5 sen or 10.48% to 58 sen, the highest since March 8.
The counter, which was the third most actively traded, saw 24.53 million shares done.
Year to date, the stock has fallen 27.5%.
Favelle Favco announced on Thursday that the 85 sen dividend will be paid out on June 10.
The ex-date of the dividend is May 25, while the entitlement date falls on May 26.
The first interim dividend came before the release of the company’s quarterly financial performance for the first quarter ended March 31, 2022, which is due this month.
The group recommended a first and final tax-exempt dividend of eight sen per ordinary share in respect of FY21.
Based on Favelle Favco's issued share capital of 231.84 million, the 85 sen dividend would cost the company approximately RM197.07 million.
According to Favelle Favco's annual report, Muhibbah holds a 61.32% stake in the company. Thus, the latter is expected to get a tax-exempt windfall of RM120.84 million.