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.
|
September 2018 |
3.00 cps |
|
June 2018 |
2.89 cps |
|
March 2018 |
2.89 cps |
|
December 2017 |
2.83 cps |
|
September 2017 |
2.77 cps |
|
June 2017 |
2.79 cps |
|
March 2017 |
2.72 cps |
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 days immediately following the ex-dividend date). Furthermore, shares issued under the DRP do not incur brokerage costs.
The company will from time to time buyback its own shares on market if in the opinion of the Board the Kingfish share price does not appropriately reflect the company's underlying NAV.
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 not buy back shares when the discount is below 8%.
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 until 31 October 2018.
Shares purchased under the policy are held as treasury stock and are available to be re-issued under the dividend reinvestment plan or to pay performance fees to the Manager.
On the 2 July 2018 the Directors of Kingfish announced that the company would undertake a pro rata offer of warrants to shareholders. Kingfish shareholders will be allotted one warrant for every four shares held on record date (18 July 2018).
Each warrant gives shareholders the right, but not the obligation to subscribe for one ordinary share in Kingfish on the exercise date (12 July 2019). The exercise price will be $1.37 less any dividends declared during the period up to the exercise date.
A copy of the Warrant Terms can be found here.
Previous warrant issues:
|
Exercise Price |
Exercise Date / Exercise Period |
Total % Exercised |
|
|
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.
