STGT Jumps 1.6% on the 1st Trading Day with a New Par and a 50% Div. Distribution from NP

STGT Jumps 1.6% on the 1st Trading Day with a New Par and a 50% Div. Distribution from NP.

The share price of Sri Trang Gloves (Thailand) Public Company Limited (STGT) rose ฿0.62/share or 1.64% to ฿38.25/share on its day trading day with a new par value.

 

On January 5, 2021, STGT traded in the Stock Exchange of Thailand (SET) with a new par value at THB 0.5 per share from the previous THB 1.00 per share. The par splitting will result in an increase of STGT’s ordinary shares from 1,434.78 million shares to 2,869.56 million shares, which STGT saw as a beneficial factor for STGT’s shareholders as well as the company itself.

Last month, the Board of Directors and the Extraordinary General Meeting of Shareholders approved the change in dividend policy to pay dividend distributions to shareholders at least 50 percent of its net profit based on the company’s separate financial statements.

As for the secondary listing in the Singapore stock market (SGX) in the main board, the company is in the process of filing documents to the stock exchange for consideration. STGT expected to debut its trading session in SGX by 2Q21 in which there will be no issuance of new ordinary shares. The company will exercise its existing shares to trade in SGX. The listing in SGX will expand the company’s shareholder base, increase its reputation and create a channel for further funding for investment in the future.

 

Finansia Syrus Securities (FSS) has given a “BUY” recommendation on STGT with a target price at ฿48.00/share (฿96.00/share prior to the par splitting) in response to the attractiveness on 50% dividend distributions from its net profit, while expecting that the selling price would remain high in 4Q20.

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