icapital.biz Bhd's designated person Tan Teng Boo. - SHAARI CHEMAT / THESTAR
PETALING JAYA: icapital.biz Bhd (Icap), Malaysia’s only listed closed-end fund, has declared its maiden interim dividend of 10.41 sen per Icap share for its financial year ending May 31, 2025.
In a filing with Bursa Malaysia, the fund noted its dividend reinvestment plan (DRP) will also apply to the entire portion of this interim dividend.
The board of Icap has also fixed the issue price of the new shares to be issued following the DRP at RM2.92 per share.
“We designed this highly innovative dividend policy to address the needs of various shareowners – those seeking long-term capital appreciation, those needing some regular distribution and those who may have to cash in their holdings,” said Tan Teng Boo.
Tan is the designated person of icap and founder and managing director of Capital Dynamics.
He added the DRP reflected confidence in the growth prospects of Icap.
Icap’s innovative dividend policy was first announced on Sept 29, 2023.
It is formulated as follows: a base rate of 1% of Icap’s net asset value (NAV) per share, plus 8% of the difference between Icap’s share price and the NAV.
This additional 8% is referred to as the top-up rate.
In summary, this innovative dividend policy consists of the aggregate of the 1% base rate and the 8% top-up rate.
Icap shares closed at RM3.02 last Friday, giving the fund a market capitalisation of RM422.8mil.
