Kontiki Finance Limited is offering an exciting opportunity for its shareholders to acquire more shares through a newly implemented dividend reinvestment plan. This initiative allows existing shareholders to convert their cash dividends into additional shares at a discounted price, rather than receiving cash payouts.
The company has set the reinvestment price at $1.02 per share, which represents a five percent discount compared to the average share price over the month preceding the dividend announcement. This means that shareholders can potentially increase their stake in the company without incurring any brokerage fees or levies, as confirmed by Kontiki Finance’s chairman, Barry Whiteside.
Mr. Whiteside explained that shareholders who choose to participate will receive new shares equivalent to their total dividend entitlement. However, the total number of shares will be rounded down to ensure a precise allocation. Shareholders registered with Kontiki Finance by November 15 will have the option to utilize this reinvestment plan, granting them the chance to enhance their equity in the company.
For instance, if a shareholder is entitled to $100 in dividends, they could opt to reinvest that amount and receive 102 additional shares instead of a cash payout.
This initiative not only represents a practical method for shareholders to grow their investments but also reflects Kontiki Finance’s commitment to providing value and flexibility to its investors. It’s a promising step toward building stronger shareholder relations and reinforcing confidence in the company’s future.
In summary, Kontiki Finance’s new dividend reinvestment plan allows shareholders to boost their ownership at a discount, creating a win-win scenario as they benefit from increased shares without incurring additional costs. This move could ultimately foster a stronger and more invested shareholder base for Kontiki Finance.
Leave a comment