KUALA LUMPUR (Oct 22): Jaycorp Bhd’s share price hit a record high during early trade on Friday morning (Oct 22), scaling to RM2.01 following its bonus issue plan.
Nevertheless, the high was brief as it lost steam soon after. By 9.30am, it had slipped marginally to RM1.86, still representing a 10.06% increase from the previous day’s close at RM1.69. This put Jaycorp’s market capitalisation at RM255.29 million.
The last time Jaycorp shares inched past RM1.75 was on March 17, when it traded between RM1.75 and RM1.88 for close to a month before falling below RM1.75 on April 16.
The rally in its share price also came as Jaycorp announced that its second-quarter net profit increased 88.04% to RM10.11 million, from RM5.38 million a year ago, on the back of higher profit from its furniture and carton box manufacturing business.
On Thursday, Jaycorp proposed to undertake a bonus issue of 137.25 million new shares on the basis of one bonus share for every one share held.
The group said that the bonus issue could encourage greater participation in its shares, which might lead to improved trading liquidity of Jaycorp shares.
Based on the five-day volume weighted average price (VWAP) of Jaycorp shares up to Oct 20, and the lowest daily VWAP of its shares during the past three-month period up to Oct 20, the theoretical ex-bonus price of its shares is expected to be between 79.16 sen and 83.1 sen.
The proposed bonus issue is expected to be completed by the first quarter of 2022.
That said, Jaycorp shares have been on a run since Oct 7. Between the closing price of RM1.60 on Oct 7 and Friday morning’s price of RM1.86, the counter gained 16.25%.
Jaycorp announces 1-for-1 bonus issue