Share split eyed for Thilawa Holdings
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.
A worker walks past condos at the Pun Hlaing Golf Estate.