Hot stock: Straits Trading up as much as 10.1% on special dividend cheer
Sharanya Pillai
SHARES of Straits Trading soared as much as 10.1 per cent, or S$0.31, to a 4-month high of S$3.37 on Monday (Aug 15) morning, after the company declared a special dividend on the back of strong H1 results.
Straits Trading shares kicked off the day at S$3.34, up 9.2 per cent or S$0.28, with before climbing to a high of S$3.37 at 9.03 am, and again at 9.11 am. As at 9.30 am, Straits Trading had walked back some gains to S$3.32, with 538,100 shares changing hands. No married deals were recorded, according to ShareInvestor data.
The active trading comes after the company on Sunday declared a special dividend, distributing either ESR shares or Straits Trading shares to entitled shareholders.
Straits Trading enjoyed a strong H1 2022 performance, driven by the divestment of ARA Asset Management to ESR Group. The divestment value was recognised at S$1.1 billion, an internal rate of return of 18.2 per cent or 3.7 times equity multiple of the original cost of investment.
Eligible shareholders may choose to receive 145 ESR shares or 180 new Straits Trading shares for every 1,000 Straits Trading shares owned.
