Share split eyed for Thi­lawa Hold­ings

The Myanmar Times - - Business - - Steve Gil­more

Myan­mar Thi­lawa SEZ Hold­ings’ board of di­rec­tors is propos­ing to split each of the firm’s nearly 3.9 mil­lion shares into 10 in or­der to make the shares more af­ford­able and boost trad­ing.

Un­der the pro­posed plan, the num­ber of MTSH shares would rise from 3.89 mil­lion to 38.9 mil­lion. The par value – the value at which the shares can be re­deemed rather than trad­ing value – will drop from K10,000 to K1000.

Share­hold­ers will hold 10 times as many shares as they did pre­vi­ously, al­though the value of their hold­ings will re­main un­changed.

The split will ben­e­fit “the com­pany, the share­hold­ers and po­ten­tial in­vestors, be­cause the re­duced price … will make each share more af­ford­able to in­vestors”, the firm said in a state­ment on the Yan­gon Stock Ex­change.

Com­pa­nies typ­i­cally turn to share splits when their share price is rel­a­tively high, in or­der to make the com­pany’s stock more af­ford­able – par­tic­u­larly for or­di­nary re­tail in­vestors. In Myan­mar’s case, or­di­nary re­tail buy­ers com­prise the vast ma­jor­ity of YSX in­vestors, and of the three firms listed on the YSX, MTSH shares are by far the most ex­pen­sive.

MTSH shares closed at K43,000 on Septem­ber 30, while First Myan­mar In­vest­ment closed at K16,000 and Myan­mar Cit­i­zens Bank fin­ished the week at K8300.

MTSH di­rec­tors also think the split will en­cour­age more trad­ing and al­low in­vestors to be more flex­i­ble in the size of their trades, the firm said.

Share­hold­ers will have to ap­prove the split at an ex­tra­or­di­nary gen­eral meet­ing on Oc­to­ber 23.

Photo: Staff

A worker walks past con­dos at the Pun Hlaing Golf Es­tate.

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