TIME dotCom falls as stock trades ex-bonus issue

TIME dotCom falls as stock trades ex-bonus issue
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KUALA LUMPUR (Aug 4): TIME dotCom Bhd’s share price fell as much as eight sen or 1.67% to RM4.71 in Bursa Malaysia morning trade today from the Internet service provider’s adjusted closing share price of RM4.79 yesterday as the stock trades ex-bonus issue today.

At 10.40am, TIME dotCom’s share price had pared losses at RM4.72, with 74,400 shares traded so far.

According to TIME dotCom’s shareholder circular dated May 27, 2021 on the company’s proposed bonus issue, which was first announced on March 16, 2021, the corporate exercise involves a bonus issue of 1.21 billion new shares in the company on the basis of two bonus units for one existing share held.

Today, TIME dotCom’s share price is based on its adjusted ex-bonus closing share price yesterday at RM4.79 from RM14.38 originally prior to the adjustment.

The ex-bonus closing share price yesterday at RM4.79 was derived by dividing the RM14.38 original closing share price by three TIME dotCom shares after taking into account the two-for-one bonus issue.

TIME dotCom said in the circular that its number of issued shares is expected to expand to about 1.82 billion upon completion of the bonus issue from 604.71 million as at April 30, 2021, being the latest practicable date prior to the printing of this circular.

"The proposed bonus issue is not expected to have any material effect on the earnings of our group for the FYE Dec 31, 2021. 

"However, assuming the net earnings of our group remain unchanged, there will be a corresponding dilution in our EPS (earnings per share) for the FYE Dec 31, 2021 as a result of the increase in the number of TIME dotCom shares in issue arising from the proposed bonus issue,” TIME dotCom said.

Chong Jin Hun