Dividend windfall for LPI Capital shareholders
LPI Capital Bhd plans to distribute significant special dividends to shareholders following the divestment of its stake in Public Bank. The company is also reinvesting a portion of the proceeds into blue-chip stocks to maintain dividend yields.
Why it matters
This corporate action highlights strategic capital allocation and regulatory compliance within the Malaysian financial sector.
PETALING JAYA: LPI Capital Bhd is expected to distribute around RM737mil of special dividends to shareholders in the financial year ending Dec 31, 2026 (FY26) and FY27 after the sale of the company’s entire 1.13% stake in Public Bank, BIMB Research says.
The company successfully divested its 220.3 million shares in Public Bank on May 21, 2026, for gross proceeds of RM1.05bil, with 70.17% of sale proceeds set to be disbursed as special dividend payments progressively over 18 months from the date of receipt.
After revising its assumptions, the research house anticipates that approximately 75% of the 186 sen special dividends arising from the disposal will be distributed in FY26, with the remainder paid in FY27.
Moreover, the shares were sold to local and foreign institutional investors at RM4.75 per share.
The divestment also fulfilled regulatory requirements, as LPI Capital, a Public Bank subsidiary, cannot hold shares in the bank.
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