SGX to seek shareholder approval for scrip dividend scheme at Oct 7 AGM

SINGAPORE Exchange (SGX) S68 : S68 0% is looking to get approval from the eligible shareholders for the issuance of new shares under the scrip dividend scheme at the annual general meeting (AGM) on Oct 7.

SGX announced during its H2 financial results on Aug 5 that it will be putting in place a scrip dividend scheme to give shareholders the option to reinvest their cash dividends in SGX shares, but it is not intended for the final dividend of FY2021.

The group's chief financial officer Ng Yao Loong had then said that the intent of the scheme is not to shore up SGX's financial resources to meet any near-term liquidity requirements.

The company's board of directors believes that the scheme will create long term sustainable value for shareholders.

If and when applied to any particular dividend, the scrip dividend scheme will provide an opportunity for eligible shareholders to elect to receive the dividend in the form of new shares credited as fully paid, instead of cash.

SGX said this will enable these shareholders to acquire further equity in the company without having to incur brokerage fees, stamp duty and other related costs.

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SGX itself will also benefit from the retention of cash which will help to strengthen its working capital position and provide financial flexibility.

The company also noted that the current Covid-19 pandemic means it is especially important to bolster resilience and capacity given the uncertainties in the global economy.

The AGM will be held at 10am on Oct 7, and shareholders have until 10am on Oct 4 to pre-register for the virtual AGM and to submit their forms of proxy.

Shares of SGX ended Monday at S$10.03 on a cum-dividend basis, down 2 per cent or S$0.20.