Dividends | Share Buybacks | Warrants
One of the key ways the Board can add value for shareholders is through proactive capital management strategies. The objective is to increase total shareholder return and maintain the discount/premium to NAV within a reasonable range.
The Board of Kingfish have implemented the following capital management strategies:
In June 2009, Kingfish announced a new long-term distribution policy. Under the policy Kingfish will pay shareholders 2% per quarter of its average NAV.
The payments are made in March, June, September and December.
| June 2024 | 2.65cps |
| March 2024 | 2.58cps |
| December 2023 | 2.64cps |
| September 2023 | 2.79cps |
| June 2023 | 2.82cps |
| March 2023 | 2.79cps |
| December 2022 | 2.86cps |
A full history of Kingfish dividends is available.
Kingfish has a clear advantage over many other listed entities through their Portfolio Investment Entity (PIE) tax status. As a listed PIE, Kingfish dividends will be tax-free to New Zealand resident shareholders. Refer to ‘What does PIE mean?’ under the FAQ section of the website for further information.
Imputation credits will be attached to dividends to the fullest extent possible.
Dividends paid by Kingfish may include dividends received, interest income, investment gains and/or return of capital.
The DRP offers shareholders an alternative to cash dividends. Shareholders who don't require the regular income can elect to apply all or part of any cash dividends in subscribing for fully paid ordinary shares.
The advantage of enrolling in the plan is that shares issued under the DRP are at a 3% discount to the current market price (being the weighted average selling price on the first five trading days on which the Shares trade ex-entitlement for the relevant dividend or distribution). Furthermore, shares issued under the DRP do not incur brokerage costs.
The Board of Kingfish has a buyback programme in place whereby Kingfish shares (KFL) are purchased on market by the company within certain parameters determined by the Board. The buyback period runs for 12 months from the date it is announced to the market. We currently have a share buyback policy in place.
Buybacks work well in circumstances where excessive discounts to NAV exist, as it adds value for shareholders by purchasing undervalued shares in the company. Kingfish will only buy back shares if the discount to the last published net asset value, after adjusting for any changes in the S&P/NZX50G index since the last published net asset value, is greater than 6%.
Shares purchased under the policy are held as treasury stock and are available to be utilised under the dividend reinvestment plan, to the extent permitted by law.
On 26 July 2024, Kingfish warrant holders had the option to convert their warrants into ordinary Kingfish shares at an exercise price of $1.26 per warrant.
On the exercise date 1,067,092 warrants out of a possible 83,105,144 warrants (1.28%) were converted into Kingfish ordinary shares.
The new shares were allotted to warrant holders on 31 July 2024. All new shares have the same rights as current Kingfish shares, including participating in the company’s quarterly dividend policy.
The remaining 82,038,052 warrants which were not exercised have now lapsed, and all rights in regard to them have now expired.
The additional funds will be invested in Kingfish’s current investment portfolio of stocks.
Previous warrant issues:
|
Exercise Price |
Exercise Date / Exercise Period |
Total % Exercised |
|
|
KFLWH |
$1.26 |
26 July 2024 |
1.28% |
|
KFLWG |
$1.90 |
18 November 2022 |
0.17% |
|
KFLWF |
$1.51 |
12 March 2021 |
91.4% |
|
KFLWE |
$1.25 |
12 July 2019 |
87% |
|
KFLWD |
$1.21 |
5 May 2017 |
76% |
|
KFLWC |
$1.18 |
6 November 2015 |
79% |
|
KFLWB |
$0.95 |
23 November 2010 to 3 September 2012 |
39% |
|
KFLWA |
$1.00 |
31 March 2006 to 31 March 2008 |
46% |
A warrant is the right, not the obligation, to purchase an ordinary share in Kingfish at a fixed price on a fixed date.
