SINGAPORE - E-waste management company Metech International has proposed to consolidate every 50 existing ordinary shares in the company into one ordinary share, the firm announced on Monday night (Sept 24) after the stock market closed.
Directors of the company are of the view that the proposed share consolidation will help reduce share price volatility and increase market interest in its shares.
As of Sept 25, Metech has an issued and paid-up share capital of S$177.5 million, comprising 4.5 billion shares.
Subject to shareholders' approval, the proposed share consolidation will result in about 90 million consolidated shares. These consolidated shares will be traded on the Singapore Exchange's Catalist board in lots of 100 shares, Metech said.
The firm added that shareholders should note that the number of consolidated shares they will be entitled to "will be rounded down to the nearest whole consolidated share, and any fractions of a consolidated share arising from the proposed share consolidation will bedisregarded".
In an exchange filing to the Singapore bourse on Monday, Metech also noted that the proposed share consolidation will have no impact on the dollar value of the issued and paid-up share capital of the company and will not cause any material changes to the percentage shareholding of each shareholder, other than non-material changes due to the rounding and disregard of the fractional entitlement.
For the six-month period between March and August, and up to Sept 21, Metech's six-month volume weighted average price (VWAP) of each share stood at 0.3 cent. Following the completion of the proposed share consolidation, the theoretical adjusted six-month VWAP of each consolidated share will be 15 cents, the company said.
The proposed share consolidation is subject to in-principle approval from the Singapore Exchange Securities Trading (SGX-ST), as well as approval from shareholders at an extraordinary general meeting to be convened.
Shares in Metech doubled to close at 0.2 cent apiece on Monday, before this announcement.