OKP shares close 6.6% higher on proposed bonus share issue

Shares of industrial and civil engineering company OKP jumped as much as 7.5 per cent in intraday trading on news of its proposed bonus issue of up to 231.3 million shares.

The counter rose to as high as S$1.14 minutes after market open on Friday (Nov 28), a S$0.08 increase from its previous closing price. It later pared some gains, but was still up 6.6 per cent at S$1.13 as at 1.55 pm.

The counter closed at S$1.13, maintaining its 6.6 per cent gain.

On Thursday evening, OKP announced a proposed bonus issue of new shares on the basis of three bonus shares to be credited as fully paid for every four existing issued ordinary shares.

It said: “The proposed bonus issue, if carried out, will also increase the accessibility of investing in the company to more investors, thereby encouraging trading liquidity and greater participation by investors and broadening the shareholder base.”

The company had an issued and paid-up share capital of about 308.4 million shares as at Thursday evening, which could grow to about 539.8 million shares with the proposed issuance.

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The bonus OKP shares will represent about 75 per cent of the existing issued and paid-up share capital of the company and about 42.9 per cent of the enlarged share capital.

OKP’s units regularly win Land Transport Authority (LTA) and PUB contracts. It was most recently awarded a S$258.3 million LTA contract to construct new cycling paths in the east of Singapore.

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