ISDN replaces scrip dividend with cash

ISDN Holdings will withdraw the scrip dividend scheme for FY2021 and distribute the proposed dividend of S$0.0145 fully in cash instead, given that the issue price of the scrip dividend is lower than the counter’s market price.

The engineering company, in its statement filed after the market close on Tuesday (Jul 12), said that the issue price of each new share under the scrip dividend scheme is S$0.501, an amount that should not be set at more than 10 per cent discount or exceed the average of the last prices on each of the 5 trading days prior to and ending on the record date of Jul 7.

However, its last trading price for each of the 5 trading days to Jul 7 averaged only S$0.467 — lower than the issue price of the scrip dividend.

The company has thus elected to scrap the scrip dividend scheme for the financial year ended Dec 31, 2021, and pay shareholders the dividend in cash.

ISDN shares closed 1.08 per cent higher at S$0.47 on Tuesday, before the company made this announcement.