Q&M proposes 1-for-5 bonus issue

DENTAL healthcare group Q&M is proposing a bonus issue on the basis of one bonus share for every five existing shares held.

The exercise will see up to 157.5 million bonus shares issued to shareholders whose names appear in the register of members. The bonus shares will also be issued to those who have shares entered against their names in the depository register on an entitlement date to be determined.

On the back of its "strong" second quarter results, Q&M said the proposed bonus issue is to increase the issued share capital base of the company, reflecting the growth and expansion of its business. It is also to reward and recognise shareholders for their loyalty and continuing support.

These shares, however, will not be entitled to the second interim dividend of one Singapore cent per share.

The bonus shares represent about 20 per cent of Q&M's existing issued and paid-up share capital as at Monday. Assuming there are no changes to the total issued share capital, the company's bonus shares will also represent about 16.7 per cent of its enlarged share capital.

The proposed one-for-five bonus issue is subject to the Singapore Exchange's approval.

For illustrative purposes, based on Q&M shares' lowest daily weighted average price in the month before was S$0.798, the theoretical ex-bonus share price of the stock is about S$0.665.

Shares of Q&M fell by four Singapore cents, or 4.7 per cent to close at S$0.815 on Monday before the announcement.