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En.Hairuddin , several time I google to understand ESOS yet still can’t get the answer . May you pls explain as simple will ESOS effect price gap up or non related . Cos everytime I see company announce ESOS it take couple time go up . And what is the benefit company to hv ESOS . ? . Or it’s non related so next time just ignore this kind of news . Thanks
Esos is given to employees at cheaper price or free. When number of shares issued under Esos are huge, it affect the EPS due to enlarged total shares, so price drop.
But most of the time, as Ahmad said, it does not really affect negatively on prices because it shows that company and staff are confident with the company, that’s why they subscribe for it.