(Yicai Global) July 11 -- Tencent Holdings Ltd. [HK: 00700] will issue 17.87 million new shares to reward for 10,800 outperforming members of staff, the company said in a statement yesterday.
Its shares closed at HKD271.6 (USD34.77) per share yesterday, meaning that the reward is worth HKD4.85 billion (USD620 million) in total.
Tencent will implement the equity incentive to reward the employees for their contributions to the company, and to retain staff members who are instrumental to its sustainable development, it said.
The value of the new shares is equivalent to about 0.1885 percent of the total capital stock issued as of July 10, and approximately 0.1882 percent of the enlarged share capital after the placement.
The company will apply with the Listing Committee of Hong Kong Exchanges and Clearing Ltd. (HKEx) for offering the 17.87 million shares and trading of the shares, it added.
Tencent employees regard the company as a generous employer, as one of the most profitable internet companies in China.
It offered 300 shares worth CNY53,000 (USD7,800 -- calculated based on the share price back then) to every existing employee on the 18th anniversary of its foundation in 2016. The total value of the anniversary 'bonus' is projected to be around HKD1.7 billion (USD217 million). Furthermore, all serving employees, former employees and outsourced staff received cash bonuses worth a total of CNY30 million (USD4.4 million).