LPI proposes bonus issue of one for every five shares to reward shareholders
KUALA LUMPUR: Insurance Company LPI Capital Bhd (LPI) is proposing a bonus issue of 1 for every 5 shares exercise in order to reward its existing shareholders for their loyalty and continuous support by enabling them to have greater participation in the equity of the company in terms of numbers.
In a Bursa filing on Wednesday (January 10), the insurance company detailed that the proposed bonus issue would entail the issuance of up to 66,397,161 bonus shares on the basis of 1 bonus share for every 5 existing LPI shares held by the entitled shareholders of LPI.
“The number of bonus shares was arrived at after taking into account the share capital of the company as at January 2, being the latest practicable date prior to this announcement,” explained the filing.
On the same day (January 10), LPI also announced a second interim dividend of 45 sen alongside commendable results for its fourth quarter of financial year 2017 (4QFY17).
According to MIDF Amanah Investment Bank Bhd (MIDF Research), LPI’s 4QFY17 recorded decent earnings at RM83.1 million, advancing in growth at +1.9 per cent and cumulatively, meeting consensus expectations for FY17 at 101.2 per cent.
The positive earnings growth is understood to be derived from strong demand for fire and miscellaneous products.
“The group’s general insurance market operating revenue grew +6.7 per cent for FY17. The demand for LPI’s general insurance products remains robust despite operating in a more competitive environment following motor detariffication,” said the research arm in a results review.