KUALA LUMPUR (Feb 24): Pasukhas Group Bhd has proposed the consolidation of every 10 of its shares into one share to improve the company’s capital structure.

“As the company has a large number of shares in issue and a relatively low trading price range, the board noted that a small movement in the share price may result in high percentage movement in the share price,” it said in a bourse filing.

“The proposed share consolidation would lead to a reduction in the number of shares available in the market and may reduce the magnitude of fluctuation of the company’s market capitalisation,” it added.

As at the latest practicable date of Feb 10, the issued share capital of the construction company was RM224.23 million comprising 1.91 billion shares. Pasukhas also has 578.66 million outstanding Warrants A.

Following the consolidation, Pasukhas said it will see its number of issued shares reduced to between 190.5 million on a share capital of RM224.23 million, and 248.4 million on a share capital of RM317.17 million.

The maximum scenario is assuming the full exercise of its outstanding Warrants A at the exercise price of 10 sen each and after accounting for the reversal of warrants reserve, it said.

“The proposed share consolidation will not have any effect on the consolidated earnings of the group for the 18-month financial period ending June 30, 2023, except that the lower number of Pasukhas shares in issue upon completion of the consolidation will result in a corresponding increase in the earnings per share of the group,” the company added.

Pasukhas shares closed unchanged at two sen on Friday, valuing the group at RM28.58 million.