AEM Holdings (SGX:AWX) saw its stock price plummet by 3.03% in Tuesday's trading session, following announcements of share issuances related to employee compensation plans. The semiconductor and electronics test solutions provider made two significant disclosures that appear to have influenced investor sentiment.
In the first announcement, AEM revealed the granting of 369,956 share awards to employees under its 2024 restricted shares plan. These shares, valued at SG$1.32 each, will vest annually over three years starting April 1, 2026. This move, while aimed at aligning employee interests with those of shareholders, may have raised concerns about potential dilution of existing shares.
Additionally, the company issued and allotted 158,290 new shares pursuant to the vesting of awards under its 2017 performance share plan. These newly issued shares are expected to be listed and begin trading on or around April 3. As a result, AEM's total number of issued and paid-up shares has increased to 315,919,841. This immediate increase in the number of outstanding shares likely contributed to the downward pressure on the stock price, as it represents a dilution of existing shareholders' stakes.
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