Tiong Nam to distribute 12.9m treasury shares in 1-for-40 dividend

INTEGRATED logistics and warehousing solutions provider, Tiong Nam Logistics Holdings Bhd, has declared a share dividend to reward its shareholders, offering one treasury share for every 40 existing ordinary shares held.

It told the bourse in a filing today that the share dividend will involve the distribution of up to 12.9 million treasury shares to Tiong Nam’s shareholders.

The ex-date for the dividend is set for November 26, 2024, and the shares will be credited on December 18, 2024.

In a separate statement, its MD Ong Yoong Nyock said the share dividend distribution allows the firm to reward its loyal shareholders and provide greater participation in Tiong Nam’s future growth.

“We are enhancing our logistics and warehousing infrastructure across Malaysia and Singapore to meet the rising demand for integrated logistics solutions.

“As we aim for significant revenue growth for this segment in FY2025, our ongoing expansions will boost our capacity to better serve our customers and capture new opportunities. We are also further developing our landbank through our property development segment. These initiatives will contribute to long-term value for our shareholders,” he said.

Tiong Nam is expanding its integrated logistics and warehousing network to meet the increasing demand for integrated logistics solutions.

The group is undertaking an estimated RM460 million in capital expenditure over the next two financial years, ending March 31, 2025 (FY2025) and 2026 (FY2026), primarily for warehouse expansions.

As of 30 June 2024, the group is constructing four new warehouses in Johor Bahru, Kedah, Sabah, and Singapore, with a total capacity of 1.3 million square feet, to be operational in stages between FY2025 and FY2026.

Additionally, Tiong Nam plans to build four more warehouses in Johor Bahru, Selangor, and Kedah, with a total capacity of 0.7 million sq. ft.

Construction of these warehouses is expected to commence in FY2025 and be completed in phases until FY2026.

The ongoing and planned expansions will boost Tiong Nam’s total warehousing capacity by 26.0% to 9.7 million sq. ft. in FY2026, from 7.7 million sq. ft. as at 30 June 2024.

Beyond its logistics and warehousing network, Tiong Nam’s property development segment is undertaking a mixed development project in Kota Masai, Johor.

The second and third phases of the project, comprising shop lots and terrace houses with a gross development value of RM106.6 million, are currently under construction. –TMR