UG Healthcare proposes 1-for-3 stock split

CATALIST-listed Malaysian glove maker UG Healthcare is proposing a share split of every one existing share into three shares, on a record date to be determined by the board later.

The proposed stock split will reduce the price of each board lot and give investors greater flexibility in terms of the size of their trades, enhancing trading liquidity, the board said. It will also broaden the base of shareholders.

Currently, UG Healthcare has an issued and paid-up share capital of S$58.7 million comprising 205 million shares. Following the completion of the proposed share split, an additional 410 million shares will be allotted and issued.

For illustration purposes only and assuming that the proposed stock split had been completed on Aug 31, the theoretical price for the shares traded after the split would be S$0.75223 (based on the lowest daily weighted average price of the shares for trades done from July 31 to Aug 30).

The stock split is subject to shareholders' approval and a circular will be despatched in due course to provide shareholders with information relating to the proposed stock split, together with the notice of the general meeting.

On Aug 11, the group had recommended a final dividend of S$0.00714 per share amounting to a total amount of approximately S$1.4 million, subject to shareholders' approval at the forthcoming annual general meeting.

Subject to shareholders' approval being received for the proposed stock split, the final dividend will be adjusted to S$0.00238 per share. The total amount of dividends payable will be increased to about S$1.5 million after taking into consideration 7.5 million shares and 1.4 million shares issued pursuant to the placement exercise and the exercise of share options pursuant to the Unigloves Employee Share Option Scheme.

UG Healthcare shares rose five Singapore cents or 2.24 per cent to S$2.28 on Monday.