KUALA LUMPUR (Oct 31): Property developer LBS Bina Group Bhd has proposed to split its shares on a one-to-two (1-to-2) basis, followed by a bonus issuance on the basis of 1 bonus share for every 10 split shares held (1-for-10).

In a filing with Bursa Malaysia today, LBS said the first will result in the subdivision of every one existing share into two ordinary shares, on an entitlement date to be fixed.

Subsequently the group will undertake the bonus issue, which will involve the issuance of up to 162.99 million new shares on the 1-for-10 basis.

LBS said the proposed share split is expected to improve trading liquidity of its shares, while the bonus issue aims at rewarding existing shareholders for their loyalty and continued support.

The bonus issue shall be effected by way of capitalising the share premium and retained profits of the company, the filing said. 

The share split requires shareholders’ approval at an extraordinary general meeting. LBS expects both of these proposed exercises to be completed by the first quarter of 2018.

The group’s share price slid 3 sen or 1.54% to close at RM1.92 today, giving it a market capitalisation of RM1.31 billion. Year-to-date, the stock has gained 18.52% from RM1.62 on Jan 2.