Food Empire Holdings Limited announced on May, 13 2026 that its board intends to undertake a bonus issue of new ordinary shares on the basis of one bonus share for every five existing shares held on a record date to be fixed later. Fractional entitlements will be disregarded.

The company currently has 551.43 million issued shares, including 0.21 million treasury shares. Based on that figure and assuming no change before the record date, up to about 110.29 million bonus shares could be issued. The shares will be allotted fully paid at nil consideration without capitalising reserves and will rank pari passu with existing shares, except they will not qualify for the final dividend of 0.05 Singapore dollars and the special dividend of 0.04 Singapore dollars declared for the year ended Dec, 31 2025.

The issue will be made under the general mandate approved at the Apr, 17 2026 annual general meeting, which permits the company to issue up to 274.93 million new shares on a pro-rata basis.

In accordance with Singapore Exchange rules, Food Empire calculated a theoretical ex-bonus price of 2.44 Singapore dollars, based on the lowest daily weighted average price of 2.93 Singapore dollars in the month preceding the announcement. This is well above the exchange’s minimum price requirement of 0.50 Singapore dollars.

The bonus issue will trigger an adjustment to the exchange price of the company’s outstanding 5.5% redeemable exchangeable notes. The exchange price will fall from 1.09 Singapore dollars to roughly 0.9083 Singapore dollars per share, increasing the maximum shares issuable on full conversion from 48.63 million to 58.36 million.

Food Empire will apply to the Singapore Exchange for the listing and quotation of the bonus shares in due course. Shareholders were advised that the proposal remains subject to regulatory approval and should exercise caution when dealing in the company’s shares.