Singapore-listed offshore services provider Swiber Holdings has proposed a two-for-one share consolidation to comply with a Singapore Exchange (SGX) listing requirement.
Under the requirement introduced by the Monetary Authority of Singapore and SGX, companies registered with the SGX Mainboard are required to have a minimum trading price of SGD0.20 (USD0.15) with effect from 2 March 2015.
Swiber’s shares have been trading at between SGD0.14 to SGD0.23 for the past six months, resulting in a volume-weighted average price (VWAP) of SGD0.1861.
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“Under the proposed share consolidation, every two shares registered in the name of each shareholder as of the books closure date will be consolidated into one,” Swiber said in its SGX filing. “Each consolidated share will rank equally with one another. The consolidated shares will be traded in a board lot of 100 consolidated shares.”
The proposal will see the company’s current issue of 919 million ordinary shares consolidated into 460 million ordinary shares, theoretically providing an adjusted six-month VWAP of SGD0.3722.
Swiber will put the proposed consolidation to shareholders at an extraordinary general meeting on a date to be announced.