MTQ Corporation

[dydx]

A scrip dividend option allows existing MTQ shareholders to re-invest the declared coming $0.02/share Interim dividend into more new MTQ shares at the prevailing share price (last done price: $0.925), thereby also indirectly allowing them to raise their proportionate stakes against those who opt to take their dividends in cash. To most of the small or minority shareholders, it doesn't really make much of a difference, as by taking the scrip option, the $0.02/share dividend amount will allow them to buy 2.16% more MTQ shares on their existing small stakes and, at the same time, at least keep their small proportionate stakes intact. To the controlling shareholders like the Kuah Family, taking the scrip option will allow them to strategically raise their proportionate stakes in MTQ - against those minority shareholders who opt to take their dividends in cash - in an effective and likely also cheaper way, as compared to them buying more shares in the open-market, likely at a higher average share price.

From a rational viewpoint, as long as the prevailing share price is significantly below its corresponding fair or intrinsic value, it is advantageous for shareholders to take their dividends in scrip, especially if the underlying business is poised to grow further, and if it is difficult to buy more shares except by paying higher prices.

I bet the Kuah Family will opt to take their dividends in scrip, unless of course if they are in need of the money for other purposes.