Requirements in relation to bonus issue
C Bhd, a listed issuer is undertaking a bonus issue by capitalising its reserves arising from the revaluation of real estate. The valuation figure of the real estate is RM100 million. Pursuant to paragraph 6.31(4) of the Main LR, Bursa Securities obtains a second opinion valuation, by which the real estate is valued at RM80 million. C Bhd is required to retain at least 20% of the valuation amount of the real estate in the revaluation reserves after undertaking the bonus issue in accordance with the provisions of the Main LR. How much should C Bhd retain?
C Bhd should retain at least RM16 million in the
revaluation reserves after taking into account/undertaking the bonus issue
(i.e. based on the lower of the 2 valuation figures). The 20% is computed based
on the valuation amount for the real estate set out in the valuation report.
Where a second opinion valuation is required, the 20% would be based on the
lower of the 2 valuation figures.