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QuestionsCategory: MiscellaneousBonus issue and free warrant
Thomas asked 5 years ago

Hi Victor/Rusmin,
Recently, one of the company that I’m currently invested in have announced bonus issue and free warrant. It got me thinking, how do you view such announcement? what are your thoughts on this bonus issue and free warrant? For me, its EPS might be diluted in the future.

1 Answers
Victor Chng answered 5 years ago

Hi Thomas,
The bonus and free warrant are given to you hence there is no dilution on your side unless you did not exercise the warrant. Bonus issue do not have dilution.