KUALA LUMPUR (July 23): Vivocom International Holdings Bhd is planning to consolidate every 10 shares in the ACE Market-listed construction firm into one new share.
"In view of the large share base and low trading price, the proposed share consolidation is expected to enhance the company's share capital structure by consolidating the existing Vivocom shares, which will result in a reduction in the number of shares available in the market," the group said in a filing with Bursa Malaysia.
The exercise will see Vivocom's share base consolidated to about 680 million shares, from about 6.8 billion shares presently, under the maximum scenario, which assumes all the group's outstanding warrants E are exercised prior to the consolidation.
Barring any unforeseen circumstances and subject to all required approvals being obtained, the board expects the share consolidation to be completed by the fourth quarter of 2020.
Vivocom's share price closed 0.5 sen or 12.5% lower at 3.5 sen, giving the group a market capitalisation of RM198.26 million. Some 22.11 million shares were traded.