KUALA LUMPUR (Oct 17): AE Multi Holdings Bhd, whose share price tumbled from 12.2 sen at end-2020 to one sen currently, is planning to consolidate every 10 existing shares held by its shareholders into one share on an entitlement date to be determined later.

In a bourse filing, the company said the proposed share consolidation would result in an adjustment to the reference price of its shares and warrants B.

For illustration, based on the last transacted market price of its shares of 1.5 sen per share as at Oct 2 (the latest practicable date), the theoretical adjusted reference price of its consolidated shares would be 15 sen per share upon completion of the proposed share consolidation, while warrants B’s adjusted reference price would be 10 sen apiece, compared with one sen apiece as at Oct 2. 

The group said that upon completion of the share consolidation, its issued share capital will be at 216.35 million shares under the minimum scenario, or 324.52 million shares under the maximum scenario, assuming full exercise of warrants B.

As at Oct 2, the group’s issued capital stood at RM167.25 million, comprising 2.16 billion shares.

It also had 1.08 billion outstanding warrants B.

The exercise, which is subject to approvals from Bursa Securities and shareholders of the group, is expected to be completed by the fourth quarter of this year.

TA Securities has been appointed to act as the principal adviser for the proposed share consolidation.

Shares in AE Multi closed down half a sen or 33.33% at one sen on Tuesday, valuing the group at RM22 million.