QL shares surge to near four-year high following planned bonus share issue

KUALA LUMPUR (July 11): Shares in QL Resources Bhd (KL:QL) surged to their highest in nearly four years, after the agroculture company proposed one-for-two bonus share issuance.

The stock climbed as much as 3.8% or 24 sen to RM6.77, its highest since October 2020, on Thursday morning. The counter then pared gains to trade at RM6.74 a share at 9.20am, valuing the company at RM16.38 billion on Bursa Malaysia. Trading volume totalled 449,100 shares so far.

QL on Wednesday proposed a bonus issue of up to 1.22 billion ordinary shares at a 1:2 ratio, rewarding shareholders. 

As of June 28, the company’s issued share capital was RM620 million with 2.43 billion shares. 

The bonus issue aims to boost trading liquidity, and make QL shares more affordable without affecting market capitalisation, encouraging greater investor participation. 

Completion is expected by the third quarter. Post issuance, the share price will be adjusted but not below 50 sen, with an expected ex-bonus price between RM3.93 and RM4.33. 

This move is anticipated to increase trading volume and shareholder ownership without disrupting cash flow. 

The initiative reflects QL’s confidence in its growth prospects, bolstered by a projected 30% increase in regional and local poultry demand by 2030. 

MIDF Research in a note on Thursday made no changes to its earnings forecasts for QL for the financial year ending March 31, 2025 (FY2025) to FY2027, even though it revised down its FY2025 earnings per share and dividend per share estimates by 33% to account for the additional shares.

The research house kept its ‘buy’ call on the counter, with an unchanged target price of RM7.25 a share.

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