KUALA LUMPUR (July 22): Consumer finance company RCE Capital Bhd (KL:RCECAP) proposed a one-for-one bonus issue on Monday, involving the issuance of 764.9 million new bonus shares.

The entitlement date will be determined after all relevant approval for the bonus issues have been obtained, according to RCE’s exchange filing. Based on the five-day volume-weighted average price of the shares up to June 30, 2024, the theoretical ex-bonus share price would be RM1.41, it noted.

RCE Capital said the bonus issue is to improve trading liquidity of its shares in the market at a more affordable price, and to encourage greater participation from a broader range of investors.

The proposal is expected to be completed in the third quarter of 2024, RCE Capital added.

Shares of RCE Capital have erased recent gains from the optimism of an earnings boost as a result of the increase in civil servants’ salaries, and are now down 4.58% year-to-date, following its results announcement.

RCE Capital’s net profit in its fourth quarter ended March 31, 2024 (4QFY2024) fell 16.6% year-on-year to RM29.06 million, its lowest quarterly profit since 1QFY2021, on higher allowances for impairment loss, amid an increase in non-performing financing, as well as on greater operating expenses.

Quarterly revenue inched down to RM82.46 million during the quarter under review (4QFY2024), from RM82.65 million in the same quarter a year ago.

RCE Capital’s shares closed two sen or 0.69% higher at RM2.92 on Monday, valuing the company at RM2.14 billion before the bonus share announcement.