In a filing with Bursa Malaysia today, the mineral water producer said the proposed bonus issue is expected to be completed by the second quarter this year.
The group’s issued share capital is RM223.24 million comprising 212.88 million shares (including 24,600 treasury shares) as at March 28 2023.
The proposed bonus issue is part of an overall “shareholder value enhancement plan”, which includes the previously announced dividend payout ratio, enhanced dividend per share year-to-year, and share buy-back exercise, the filing said.
“Operationally, over the past five years, Spritzer and its subsidiary companies have embarked on an expansion programme to improve supply chain management efficiency as well as to increase its production capacity across its three existing water bottling plants located in Taiping, Shah Alam and Yong Peng,” the filing said.
This has seen the group achieve an annual production capacity of about one billion litres of bottled water in 2022 versus about 650 million litres of bottled water in 2017.
These initiatives are envisaged to sustain its growth potential and further strengthen its position within the bottled water industry.
The filing also said the bonus issue will potentially result in an improved trading liquidity of its shares at an affordable share price, without affecting the size of the company’s market capitalisation.
It will also encourage greater participation by investors as well as potentially broaden the company’s shareholder base, it added.
The proposed bonus issue is not expected to have any material effect on the group’s earnings for the financial year ending Dec 31, 2023.
It noted the group’s earnings per share will be proportionately diluted due to the increase in the number of shares in issue on completion of the proposed bonus issue.
UOB Kay Hian Securities (M) Sdn Bhd has been appointed as the adviser for the proposed bonus issue.
Spritzer’s share price closed one sen or 0.43% higher to RM2.36, valuing it at RM502.39 million.
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