Accrelist proposes 20-to-1 share consolidation

SGX ticker at Shenton Way building in Singapore; taken October 2018.SGX ticker at Shenton Way building in Singapore.

Accrelist proposed Wednesday consolidating its shares, with shareholders to receive one consolidated share for every 20 existing shares held.

Any fractional shares will be aggregated or disregarded, and any shareholder with fewer than 20 existing shares will not be entitled to a consolidated share and will cease to be a shareholder upon the consolidation’s completion, the company said in a filing to SGX.

Accrelist currently has paid-up share capital of S$113.93 million comprising 5.58 billion existing shares, the filing said.

After the proposed consolidation, the company’s paid-up share capital will be unchanged, but it will have 279.14 million consolidated shares, Accrelist said. The consolidation is subject to shareholder approval at an extraordinary general meeting.

“Given their susceptibility to speculation and market manipulation, lowly-priced shares are generally more volatile,” the filing said, noting that for the six-month period through Tuesday, the shares traded between S$0.002 and S$0.005.

After the proposed consolidation, the theoretical volume weighted average price for the consolidated shares will be S$0.08, Accrelist said.

“The board believes that the proposed share consolidation may serve to reduce the volatility of its share price and reduce fluctuations in the company’s market capitalization and reduce the percentage transaction cost for trading in each board lot of shares,” Accrelist said.

“In addition, the proposed share consolidation may facilitate corporate actions and also increase market interest and activity in the shares, and generally make the shares more attractive to investors, including institutional investors, thus providing a more diverse shareholder base,” the filing said.

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