Q&M Dental receives in-principle approval to issue up to 161m new shares

Q&M Dental Group on Thursday said it received in-principle approval for its proposed bonus issue of up to 161 million new ordinary shares, representing about 20.5 per cent of the group's existing issued and paid-up share capital of 804.9 million shares (see amendment note).

This is on the basis of one bonus share to be credited as fully paid for every five existing ordinary shares in the capital of Q&M held by shareholders, fractional entitlements to be disregarded, as at the record date to be determined by the directors.

The bonus shares will be issued to shareholders whose names appear in the Register of Members or who have shares entered against their names in the Depository Register as at the record date.

The new shares will rank equally in all respects with the existing ordinary shares and with each other, except that the bonus shares will not be entitled to any dividends, rights, allotments or other distributions.

Notice of the record date will be disclosed at a later date after the necessary approvals have been obtained from SGX-ST.

In its original Aug 13 announcement (see amendment note), Q&M said the proposed bonus issue aims to increase the issued share capital base of the company to reflect the growth and expansion of the business and to "reward and give due recognition to shareholders for their loyalty and continuing support".

If carried out, the proposed bonus issue will also increase the accessibility of investing in Q&M, thereby encouraging trading liquidity and greater participation by investors and broadening the shareholder base of the company, it noted.

The new shares will represent around 17 per cent (see amendment note) of the enlarged share capital (excluding treasury shares and subsidiary holdings) of Q&M following the completion of the proposed bonus issue, assuming no changes to its total issued share capital as at the record date.

Q&M shares closed down 1 Singapore cent or 1.2 per cent to 80 cents on Thursday.

Amendment note: An earlier version of this article stated that Q&M proposed a bonus issue of new shares, when in fact it received in-principle approval for the listing and quotation for the proposed bonus issue. It also carried the incorrect statement that Q&M proposed a bonus issue of up to 157.46 million new ordinary shares per the group's Aug 13 filing. This and its related figures have since been corrected by the group through an Aug 16 corrigendum filed to the SGX. The article has been amended to reflect these facts, including the reinstated figures.