KUALA LUMPUR (March 17): Focus Point Holdings Bhd (KL:FOCUSP) has proposed a one-for-three bonus issue, alongside a dividend reinvestment plan (DRP) and a share grant plan (SGP), aimed at enhancing shareholder value and incentivising employees.
The bonus issue will involve 153.99 million new shares, with the entitlement date to be determined after obtaining all necessary approvals.
Under the DRP, shareholders will have the option to reinvest their cash dividends into new shares instead of receiving cash payouts. The initiative offers shareholders an opportunity to increase their stake in Focus Point while allowing the company to preserve its cash reserves.
The issue price of reinvested shares will be based on the five-day volume-weighted average price preceding the dividend declaration, with a maximum discount of 10%. The DRP is optional, and Focus Point is not obligated to apply it to every dividend.
Meanwhile, the SGP, capped at 10% of issued shares, is designed to retain and motivate key employees. It will be available to executive directors and employees of Focus Point and its subsidiaries, excluding non-executive directors.
Employees granted shares under the SGP will not need to make payments, though non-participating employees may see a slight dilution in their ownership percentage due to the increased number of shares.
These proposals are subject to shareholder approval at an extraordinary general meeting and approval from Bursa Securities for listing.
Focus Point anticipates completing the bonus issue in the first half of 2025, with the implementation of the DRP and SGP planned for the second half of the year.
For the financial year ended Dec 31, 2024 (FY2024), Focus Point’s net profit grew 10% to RM33.19 million, from RM30.15 million a year ago, while total revenue increased 12.1% to RM292.53 million from RM260.89 million in FY2023.
Shares of Focus Point closed up one sen or 1.4% at 72.5 sen on Monday, giving the company a market capitalisation of RM334.95 million. Year to date, the stock has fallen 9.9%.