Prestige Assurance Plc announced the proposal of share bonus to the shareholders for the period ended 31 December 2019.
Bonus shares in the ratio of 2 new shares for every 11 existing shares held by existing shareholders whose name appear on the Register of Members at the close of business on 19th June 2020, is subject to the approval of the appropriate regulatory authorities.
The qualification date is 19 June 2020. This means that if you hold the shares of Prestige Assurance Plc at the end of trading on the 19th of June 2020, you will be entitled to get the bonus shares.
The 2 for 11 share bonus implies that, if you have 10,000 units of Prestige Assurance shares at the close of trading on 19 June, you will get additional 1,818 units of shares as bonus.
The current share price of Prestige Assurance is 54 kobo per share. The 52 week high and 52 week low prices are 61 kobo and 45 kobo respectively.
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Outstanding shares of the company is 5,382,551,056 and it has a market capitalization of N2,906,577,570.24.
This new share bonus will increase the company’s outstanding shares by 18.18% which is equivalent to 978,645,647 units of shares. Thus, the total outstanding shares will increase to 6,361,196,703.
Share bonus to the shareholders is good, although it has a downside of diluting the shares as can be seen from the increase in the number of outstanding shares.
Thus the company EPS’s will be reduced as well as future dividend pay-out, unless the company greatly improves its profit to counter the change in outstanding shares.
Prestige Assurance Plc also released its Q1 2020 financial statements for the period ended 31 March 2020. The highlights of the report is shown below.
Written by;
Ifunanya Ikueze
