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Hai-O plans bonus issue, ESOS after surge in quarterly earnings
Dec 21, 2016
Source: The Edge
 
 
 

KUALA LUMPUR (Dec 21): Hai-O Enterprise Bhd, which earlier reported a 78% jump in quarterly earnings, is planning a one-for-two bonus issuance and the establishment of an employees share option scheme or ESOS of up to 15% of its issued and paid-up share capital.

In a bourse filing today, Hai-O said the bonus issuance is on the basis of one bonus share for every two existing Hai-O shares held, on an entitlement date to be fixed later.

The exercise will entail the issuance of up to 101.095 million new shares of 50 sen each in Hai-O, which will be capitalised from the company's retained earnings.

As for the proposed ESOS, it is meant for eligible employees and directors of Hai-O and its subsidiaries — excluding those which are dormant. If approved, it shall be effective for five years from the date of implementation, and can be extended for up to another five years at the discretion of the board.

Hai-O said the proposed bonus issue is to reward shareholders for their continuing support and loyalty, while increasing the number of Hai-O shares to improve trading liquidity.

The issuance is expected to expand Hai-O's issued and paid-up share capital to as much as RM174.39 million comprising 348.78 million shares, from RM101.1 million comprising 202.19 million shares at present.

The ESOS, meanwhile, is to reward and recognise the contributions of eligible persons to the growth of the group.

Both proposals are subject to the approval of shareholders at an extraordinary general meeting to be convened.

The planned bonus issuance is expected to be completed by the second quarter of 2017, with the ESOS to be established on completion of the bonus issuance.

Earlier today, Hai-O said its net profit for the second quarter ended Oct 31, 2016 (2QFY17) came in at RM15.91 million or 8.22 sen per share versus RM8.94 million or 4.58 sen a year ago, underpinned by better performance from its multi-level marketing (MLM) division.

Quarterly revenue was up 36% to RM99.78 million against RM73.59 million a year earlier, also lifted by the same.

For the cumulative six months (1HFY17), its net profit was 67% higher at RM25.65 million or 13.26 sen per share, versus RM15.38 million or 7.89 sen in 1HFY16, while revenue climbed 38% to RM178.44 million from RM128.96 million.

Hai-O shares settled seven sen or about 2% higher at RM3.77 today, giving it a market capitalisation of RM727.34 million.