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i think bonus issue is more like a status, usually company that announce bonus issue is company that expanding and have cash balance, so it kinda tell investors that the company is good, but really if based on paper value, i really dont see the difference of bonus and split
so here's my question, did DSONIC pay anything from retained earning to shareholder? i feel like is not since the so call 1:1 bonus cut the price by 50%.. any sifu did the homework can confirm this?
Bonus issue and dividend both will adjust the price on ex-date. You might prefer dividend because actual cash go into your pocket. Some might prefer BI because they got extra share. Cash rich company might issue dividend, but company with high retained earning might opt for BI..
You can check to AirAsia 90sen special dividend history. The price went straight down even before Covid... Whoever bought AA share for that 90sen dividend might be trapped and Tony shaking leg now with the amount of dividend he got from the 90sen.
@Leanna bonus issue shud give u bonus shares without share price adjust proportionately to the bonus shares issued (price might adjust due to lower EPS but that shud done by market and not outright proportionate adjustment to that)