Icon planning bonus share issue

Icon, the pharmaceutical and biotechnology group is planning a bonus share issue that will double the firm's issued share capital.

In a statement the board of the Dublin-based firm said the move was designed to increase the liquidity and marketability of the stock. Icon shares rose almost 8 per cent on the announcement on the Dublin market to €47.50, giving the company a market cap of €1.37 billion.

It said each shareholder would receive one new ordinary share for every existing ordinary share and that shareholder interests or entitlements to earnings and net assets would not be affected. The move is subject to shareholder approval.

At the end of April the company said first-quarter profit had increased 37 per cent as net income rose to $16.9 million.

Icon is forecasting full-year revenue of $840 million to $860 million and earnings per share of $2.35 to $2.45.

Icon tests new medicines for pharmaceutical and biotechnology companies and is based in Leopardstown Co Dublin.