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No price adjustment on GFH stock after bonus issue

No price adjustment on GFH stock after bonus issue
Cash dividend worth $30 million will be distributed
GFH
GFH
-2.68% 1.09 -0.03

Mubasher: GFH Financial Group announced that its ordinary general meeting (OGM) has received confirmation from Bahrain Bourse (BHB), the Dubai Financial Market (DFM), and Boursa Kuwait over the price of its stock.

The three stock exchanges, on which GFH is listed, clarified that no price adjustment should be witnessed following the issuance of bonus shares due to cancelling the equivalent amount of treasury shares, according to a bourse statement on Monday.

GFH said that 207.55 million treasury shares or 5.637% of the total issued shares will be cancelled, while 20 million shares will be maintained for the purpose of market making/liquidity activities.

The shareholders of GFH noted that bonus shares at a value of $55 million will be distributed to shareholders following the cancellation of the treasury shares.

“The remaining total issued shares post the cancellation of treasury shares will be 3,474,103,271 shares and accordingly bonus shares will be issued at a rate of 5.97% of par value at 1 share for every 16.74 shares held,” GFH said.

Cash dividend worth $30 million will be distributed at a rate of 3.34% of the nominal value of GFH’s shares at a value of $0.0087 per share, excluding the treasury shares.

“The shareholders will effectively receive a yield of 9.31% as compared to 8.71% last year (dividend of FY2017),” GFH added.