KUALA LUMPUR: Techbond Group Bhd (TGB) today approved the bonus issue of up to 431.25 million new ordinary shares in the group on the basis of five bonus shares for every four existing TGB shares.
Managing director Lee Seng Thye said the group will continue seeking avenues in addition to dividends to reward its shareholders for their patience and trust.
"To recap, TGB paid a maiden dividend of 2.0 sen per share in financial year 2020 (FY20), representing a 42.9 per cent payout. We have a formal dividend policy of distributing up to 30 per cent of our profit after tax and non-controlling interest (net profit).
"Following the shareholders' approval of the bonus issue, we expect the liquidity of our shares to improve, thus encouraging greater participation by investors, and in turn, leads to widening of the shareholder base," Lee said at the group's extraordinary general meeting (EGM) today.
The bonus issue is expected to be completed by the first quarter of 2021.
Meanwhile, Lee said the group will continue to focus on its expansion plans as well as research and development (R&D) activities.
"We place huge emphasis on R&D in order to expand our product range, meet the changing needs of our customers and ultimately strengthen our competitive advantages," he said.
On a related note, Lee said the group collaboration with the Malaysian Palm Oil Board (MPOB) in pioneering palm oil-based industrial adhesives using locally sourced and sustainable palm oil continued to make good progress.
He said the prototype has passed the stringent industry tests and the group is currently in the design for manufacturability stage and are in discussions with potential partners at the same time.
"We are excited by this project based on the huge market potential.
"All in all, the prospects for the group remains promising underpinned by our expansion plans, which is further backed by our robust balance sheet." Lee added.