Part VII Bonus Issues and Subdivision and Consolidation of Shares
An issuer that intends to make a bonus issue must promptly make an announcement, stating the following:—(1) the terms of the bonus issue; and(2) whether the Exchange's approval is required and has been obtained.
An issuer that intends to undertake a subdivision or consolidation of shares must:(1) promptly make an announcement, stating the terms of the subdivision or consolidation;(2) make an application for the listing of the subdivided or consolidated shares in accordance with the requirements for the listing of additional securities in this Chapter; and(3) obtain specific shareholder approval for the subdivision or consolidation.
No record date must be fixed until the bonus issue or subdivision or consolidation of shares has been approved by the Exchange.
An issuer must satisfy the Exchange that its daily weighted average price, adjusted for the bonus issue or subdivision of shares ("adjusted price"), will not be less than S$0.50. When deciding, the Exchange may take into account an issuer's adjusted price for the month preceding the application date.
An issuer making a bonus issue or subdivision of shares must state in the shareholder circular (if required) whether it expects to maintain the quantum of dividend declared and paid in the previous year.
If an issue is to be capitalised from the revaluation reserve, the issuer may be required to satisfy the Exchange that the amount of the revaluation reserve so capitalised will not impair the issuer's ability to absorb future diminution in the value of its assets.
An issuer must not capitalise:—(1) more than 50% of the amount standing in the revaluation reserve account; and(2) any surplus arising from the revaluation of fixed assets such as plant and machinery.
An issuer should avoid creating odd lots as far as possible.