Shareholders approve Ancom Nylex’s 3-for-1 share split
KUALA LUMPUR, May 20 — Leading regional chemicals group Ancom Nylex Bhd said its shareholders have agreed to the company’s proposal for a three-for-one share split.
According to the firm, the approval came during an extraordinary general meeting held on the matter today.
“The exercise is carried out with shareholders’ interest in mind as it may result in the improvement of trading liquidity. In addition, the narrower bid-ask spread also means lower price volatility associated with the stock moving forward,” said Lee Cheun Wei, the managing director and group chief executive of Ancom Nylex.
“Furthermore, the share price will be more affordable and accessible to a wider group of public shareholders and investors.”
A share split is when a company multiplies its number of shares by a predetermined ratio in order to generate more liquidity without altering the firm’s value.
Lee also said the company’s outlook continued to be promising, riding on strong herbicide orders from local palm estates looking to cash in on the commodity’s price surge globally.
Ancom Nylex was also poised to benefit from international customers that are expected to ramp up production to meet rising global food prices.
“The group is reaping the maximum benefit of the current uptrend following the acquisition of the remaining 50 per cent stake of the industrial chemicals business earlier this year,” Lee added.
The share split is expected to be completed within the second quarter, the firm said.
