KUALA LUMPUR (April 20): Shares in Freight Management Holdings Bhd rose over 5% to RM1.55 at the opening bell and emerged as one of the top gainers on the local bourse after the logistics firm announced yesterday its proposed bonus issue of 279.22 million new shares on the basis of one bonus unit for one existing share held.
At the time of writing today, the stock had pared its gain to trade at RM1.53, giving it a market capitalisation of RM427.21 million, with 17.77 million shares traded so far. The stock earlier rose to a high of RM1.57.
Notably, over the past one year, the counter has grown three times from merely 48 sen.
Yesterday, the group said the bonus issue serves to improve the marketability and trading liquidity of its shares on a lower trading price that would attract a broader range of investors to participate.
The group added that barring any unforeseen circumstances, the proposed bonus issue is expected to be completed by the second quarter of 2021.
The group's net profit climbed 61.41% to RM6.65 million for the second quarter ended Dec 31, 2020 (2QFY21), from RM4.12 million a year ago, on the back of higher revenue.
Meanwhile, the logistics company's revenue rose 15% to RM170.69 million, from RM148.44 million a year ago, mainly due to an increase in business activities in international freight and domestic logistics.
The group declared a second interim single-tier dividend of two sen for 2QFY21.
According to the group’s website, Freight Management is a leader in enabling manufacturers and brands to significantly enhance their logistics operations. Its network spans over 107 agents in 127 countries worldwide.