Capital Management Strategies

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:

• Regular dividend programme
• Opportunity to partake in our Dividend Reinvestment Plan
• Share buyback programme
• Warrant issues

Dividends

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.

A full history of Kingfish dividends is available.

DOWNLOAD DIVIDEND HISTORY »

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.

Dividend Reinvestment Plan (DRP)

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.

How to participate in the DRP:

• Read the DRP Offer Document
• Download the Participation Notice
• Post or email the completed Participation Notice to Kingfish's Share Registrar:
  Computershare Investor Services Limited
  Level 2, 159 Hurstmere Road
  Takapuna
  Private Bag 92119
  Auckland 1142
  Email: [email protected]

Share Buybacks

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.

Warrants

On 14 March 2025, the Board of Kingfish Limited (Kingfish) announced that the company would undertake a pro-rata offer of warrants to shareholders. 

On the record date, Kingfish shareholders will be issued one warrant for every four shares held. The record date for the issue is 30 April 2025 and the warrants are expected to be allotted on 1 May 2025.

Each warrant gives shareholders the right, but not the obligation, to subscribe for one additional ordinary share in Kingfish on the exercise date. The exercise date is 1 May 2026.

Previous warrant issues:

What is a warrant?

A warrant is the right, not the obligation, to purchase an ordinary share in Kingfish at a fixed price on a fixed date.