NMB offers cash or scrip dividend, but there’s a catch for procrastinators
NMBZ Holdings Limited declared a final dividend of US$0.21 cents per share for the year ended December 2023, but with a twist.
According to the bank, shareholders who want a slice of the pie in the form of newly issued shares (scrip dividend) will need to act fast.
The company is offering a scrip dividend option, where investors can receive new shares instead of cash. This can be an attractive option for those looking to grow their investment in the company.
The conversion price for scrip is, however, set at ZWL 2,980.05, which raises an eyebrow. Market analysts are scratching their heads at the conversion price.
“While the scrip dividend option exists, the conversion price seems high compared to recent market performance,” said one analyst who preferred to be anonymous.
This means investors who choose scrip might be getting shares at a price above their current market value.
Shareholders have until April 19th to be registered for the dividend, but election forms for scrip or cash will not be mailed until April 26th. That leaves a narrow window of just two business days to return the form, with a hard deadline of May 10th.
“The forms of election with the full details and terms of the scrip/cash dividend offer will be mailed to shareholders on 26 April 2024 and the last date of receiving the forms of election is 10 May 2024.
“The default payment will be in cash if a shareholder does not submit an election form or if it is filed out of time.
“Shareholders are requested to submit/update their mailing and banking details to the Transfer Secretaries and also immediately contact the Transfer Secretary should they not have received their dividend election forms by 3 May 2024 on the following contacts,” the bank said.
For those who miss the deadline or don’t submit a form, the default option is cash.
Against this background, NMBZ is rewarding decisive investors with the potential for more shares, but only if they navigate a bureaucratic maze with limited time.
