Thailand
First Myanmar Investment to increase 2m shares
First Myanmar Investment, one of the companies listed in the Yangon Stock Exchange (YSX), will see its share amounts rise by around 2 million shares towards the end of August.
Hence, the total shares will reach 25 million.
First Myanmar Investment (FMI), a conglomerate with interests from hospitals to airlines, is involved in real estate projects such as Thanlyin Estate Development and FMI Garden Development.
On August 15, the firm will be allocating its interest shares among shareholders for the 2016-17 fiscal year, FMI executive director U Tun Tun told The Myanmar Times. For share allocation, a single share will be valued at K100 and those who own 10 shares will be given one additional share.
The company has sold more than 23.48 million of issued shares. Shareholders who own ten shares will be given an additional share, so FMI’s shares in the market will be climbing up by 2 million.
“As of now, FMI has sold over 23 million shares. In each share, one share will be valued at an interest of K100, and shareholders of 10 shares will be awarded an extra share. The shares will be allocated according to the current circumstance of one share,” U Tun Tun explained.
Due to the ownership of additional shares, the total share amount for sales and purchase in the market has increased.
The company announced on July 1 that it will be allocating shares. Therefore, one FMI share which was valued at only K13,500 on June 30, rose up to K15,000 on July 4. The value for July 5 is currently sitting still at K14,500.
Additionally, the announcement for the shareholder stated that for the 2016-17 fiscal year, the total profit for the FMI is K161 billion. Compared with the previous fiscal year, it has increased by K8.9 billion. In the fiscal year of 2015-16, total profit was only K110 billion.
The reason for the increase in profits is because of Yoma Bank services, which FMI has invested, according to the announcement. The profit obtained from Yoma Bank services for fiscal year 2016-17 has shot up 53 percent, while Pan Hlaing hospital rose to 23.1pc.
For the bank’s operation, the loan amount is now K1.07 trillion, which means that an increase of K354 billion in loans have been offered in comparison to the previous fiscal year.
Although share allocations will be carried out, only shareholders who had owned shares until August 4 will receive the interests, said U Tun Tun. Therefore, those who buy shares on August 5 will not be receiving the allocation or bonuses for this fiscal year but will only get it for the fiscal year of 2017-18, he continued.
In addition, a biannual meeting on share allocation will be held on July 30 in order to reach agreements among shareholders. The sales and purchase of the company’s shares will be suspended between August 7 and 14 in order to facilitate account transfers – the share allocation process will begin on August 15.
After the company has announced the allocation of shares, the sales and purchase of shares declined. On June 30, the sale and purchase of the FMI shares reached 2280 but went down to 1790 on July 5.
Source: http://www.mmtimes.com/index.php/business/26698-first-myanmar-investment-to-increase-2m-shares.html