Shareholders of Kontiki Finance Limited, a locally owned credit facility, now have an opportunity to increase their investment through a new reinvestment plan. According to the company’s recent announcement, existing shareholders can choose to reinvest their dividends in additional shares at a discounted price, rather than receiving cash payouts.
The newly introduced dividend reinvestment plan sets the reinvestment price at $1.02 per share, which is determined at a five percent discount from the average share price during the month preceding the dividend announcement. This attractive pricing allows shareholders to acquire more shares without incurring any brokerage fees, as confirmed by Kontiki Finance chairman Barry Whiteside.
“Shareholders who participate in the reinvestment plan will receive newly issued shares equivalent to their entitled dividend amount,” Mr. Whiteside stated. He added that the quantity of shares will be rounded down to the nearest whole number. For shareholders registered with the company by November 15, the plan presents a compelling opportunity; for example, if a shareholder earns $100 in dividends, they can reinvest that amount for an additional 102 shares instead of opting for cash.
This initiative not only encourages shareholders to deepen their investment in Kontiki Finance but also fosters a sense of community ownership and participation in the company’s growth. By enabling shareholders to acquire more shares at a budget-friendly price, Kontiki Finance is aligning its interests with those of its investors, promoting a positive outlook for future financial performance.
As Kontiki Finance continues to enhance its shareholder engagement, this plan serves as a great example of how financial institutions can innovate to create solutions that benefit both the company and its investors.
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