Mulpha plans 10-into-one share consolidation

KUALA LUMPUR (March 22): Energy, construction and real estate group Mulpha International Bhd has announced a 10-into-one share consolidation plan to improve its capital structure and reduce the trading volatility of its shares.

The share consolidation plan, said Mulpha, will be done on the basis of 10 existing shares for one consolidated share, which will see its share capital reduced to 319.62 million from 3.196 billion currently.

“In the past three years, Mulpha shares have been traded in wide-ranging prices from 19.5 sen to 55 sen. This represents a 64.5% change in Mulpha’s transacted price from its lowest to the highest,” Mulpha said in a stock exchange filing.

“The proposed share consolidation is also part of Mulpha’s plan to improve its capital structure,” said Mulpha, which expects the share consolidation exercise to increase its earnings per share (EPS) and net asset per share.

Mulpha added that the proposed share consolidation is not expected to have any material effect on its consolidated earnings except for the proportionate increase in its consolidated EPS as a result of the reduction in the number of shares.

Mulpha expects the share consolidation exercise to be completed by the second quarter of 2017. “The application to the relevant authorities for the proposed share consolidation shall be made within one month from the date of this announcement,” Mulpha said.

Shares in Mulpha closed 0.5 sen or 1.75% lower at 28 sen yesterday, valuing Mulpha at a market capitalisation of RM894.93 million.

This article first appeared in The Edge Financial Daily, on March 22, 2017.

For more stories, download TheEdgeProperty.com pullout here for free.