KUALA LUMPUR (April 9): Integrated chemicals and lubricants distributor Samchem Holdings Bhd has proposed a bonus issue of 272 million shares on the basis of one bonus share for every share held on an entitlement date to be announced later.

“This exercise will allow shareholders to have greater participation in the equity of the company in terms of the number of shares, while maintaining their percentage of equity interest held," Samchem said in a bourse filing.

“It will also result in the shares being more affordable to appeal to a wider group of shareholders and investors, potentially improving the liquidity and marketability of the shares,” the group said.

Samchem expects the bonus issue to be completed within the second quarter of 2021.

Its CEO Ng Thin Poh said creating value for shareholders is one of the group’s priorities and the bonus issue is an alternative avenue for it to reward its shareholders apart from cash dividends.

“We have an unbroken profit track record since our IPO in 2009, which is testament to our defensive business. We have implemented various business strategies which are expected to contribute positively in 2021 and beyond, as we scale up the value chain by providing additional value-added services to our clients.

“The next few years will be exciting for Samchem as we work to expand and further strengthen our position as an integrated supply chain distributor,” he added.

Samchem's share price closed 1 sen or 0.68% higher at RM1.47 today, valuing the group at RM397.12 million.