Crédit Agricole Egypt (CIEB) will increase its issued capital by EGP 3.75 billion through the distribution of 939.08 million bonus shares.
How do Bonus Shares🤷♀️ Work Bonus shares are dividends issued in the form of free shares. Bonus shares don’t dilute shareholders’ equity, as they are issued in a constant ratio that maintains the relative equity of each shareholder’s position.
Bonus Shares vs Stock Split🤨 Both bonus shares & stock splits lead to an increase in the number of shares outstanding, resulting in a decrease in the market price per share. Bonus shares, however, do not change a stock’s par value, unlike a stock split which split the par value accordingly.
Why Bonus Shares💡 Issuing bonus shares increases the share capital of the company, making it more attractive for investors. Bonus shares are also not subject to taxation, unlike cash dividends.
Back to CIEB’s Bonus Shares🧐 CIEB will issue 3.02 bonus shares for every original share.
The record date, which is the last day CIEB shareholders will be eligible for the bonus shares, is December 29th, 2021. The payment date, the date when eligible CIEB shareholders will receive their bonus shares, is December 30th, 2021.
Why is this Important🤔 The capital increase means CIEB’s issued capital will stand at EGP 5 billion, compared to EGP 1.24 billion. CIEB was down 2.08% at the end of yesterday’s trading session.
