Techbond shareholders approve bonus share issue
KUALA LUMPUR: Techbond Group Bhd’s shareholders yesterday approved the bonus issue of up to 431.25 million new ordinary shares on the basis of five bonus shares for every four existing Techbond shares.
Managing director Lee Seng Thye said the group would continue to seek avenues in addition to dividends to reward its shareholders.
“To recap, Techbond paid a maiden dividend of two sen per share in its financial year 2020, representing a 42.9 per cent payout ratio. 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 the widening of the shareholder base,” said Lee at the group’s extraordinary general meeting (EGM) yesterday.
The bonus issue is expected to be completed in the first quarter of this year.
Meanwhile, Lee said the group would continue to focus on its expansion plans, as well as research and development (R&D) activities.
“We place a huge emphasis on R&D to expand our product range, meet our customers’ changing needs and strengthen our competitive advantages.”
Lee said the group’s collaboration with the Malaysian Palm Oil Board in pioneering palm oilbased industrial adhesives using locally-sourced and sustainable palm oil continued to make good progress.
He said the prototype had passed the industry’s stringent tests.
He added that the group was in the “design for manufacturability” stage and had held talks with potential partners.
“We are excited about 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.