KUALA LUMPUR (Aug 19): Computer Forms (M) Bhd’s (CFM) share price topped RM1 for the first time today after hitting limit up in an apparent response to the printed computer paper manufacturer’s announcement yesterday on its special dividend of 20 sen a share to reward shareholders.

Today, CFM saw a surge in trading interest as transaction volume spiked to 1.15 million shares at Bursa Malaysia’s 12:30pm break, from 4,700 yesterday.

CFM’s share price gained as much as 30 sen or 37.04% to RM1.11 after the stock was traded between 88 sen and RM1.11 so far today.

At RM1.11, CFM has a market value of about RM45.51 million based on the company’s 41 million issued shares.

CFM announced in its Bursa filings yesterday and today that its special dividend of 20 sen a share is for its current financial year ending March 31, 2022 (FY22).

According to CFM, its shares will be traded ex-dividend on Sept 1, 2021 and that the dividend will be paid to shareholders on Sept 10, 2021.

Cash dividend is a rare corporate exercise in CFM. According to CFM’s Bursa filings, the latest 20 sen special dividend is the third such payout since 2000 when the company declared a dividend of five sen a share.

Prior to the latest special 20 sen dividend, the company doled out to shareholders in 2005 a dividend of 1.5 sen a share, CFM’s filings showed.

CFM’s special 20 sen dividend is not unexpected as the company had in April 2021 said in its Bursa filing that CFM intends to allocate RM41 million as special interim dividend from the RM91.1 million proceeds from the proposed sale of four parcels of land owned by CFM’s subsidiaries to FCW Holdings Bhd.

According to CFM’s filing, the four parcels of land are located within the Setapak enclave here.

CFM and FCW are sister companies by virtue of Tan Sri Tan Hua Choon being a common major shareholder in both companies.

In CFM, Tan owned a 64.97% stake in the company as at Aug 6, 2021, according to the company's Bursa fling on Aug 9, 2021.

At FCW, he owned a combined direct and indirect stakes of 30.61% as at Sept 22, 2020, according to FCW's latest annual report.

Tan's 30.61% stakes comprised direct and indirect equity portions of 11.15% and 19.46% respectively, FCW said.