MoneyMax plans bonus share issue

MoneyMax outlet in Singapore’s Little India neighborhood; taken October 2018.MoneyMax outlet in Singapore’s Little India neighborhood; taken October 2018.

MoneyMax Financial Services is proposing a bonus issue of one new bonus share for every four existing shares held, the pawnshop operator said in a filing to SGX Thursday.

The bonus issue is intended to increase the share capital base to reflect the business’s growth and expansion, and to reward shareholders, MoneyMax said.

“The proposed bonus Issue, if carried out, will also increase the accessibility of investing in the company to more investors, thereby encouraging trading liquidity and greater participation by investors and broadening the shareholder base of the company,” MoneyMax said in the statement.

Based on the existing share capital of the company of around 353.8 million shares, around 88.45 million bonus shares will be issued under the proposal, MoneyMax said.

The bonus shares will represent around 25 percent of the company’s existing share capital, excluding treasury shares, and around 20 percent of the post-bonus-issue enlarged share capital, MoneyMax said.

The bonus shares will be issued under the share issue mandate obtained from shareholders at the annual general meeting earlier this year, MoneyMax said, noting the offering won’t require shareholder approval.