KUALA LUMPUR (March 27): Destini Bhd has proposed to consolidate every 10 existing shares held by its shareholders into one share on an entitlement date to be determined later.

According to a bourse filing on Wednesday, the integrated engineering solutions provider said the consolidation would result in an adjustment to the market prices of its shares and warrants B.

For illustrative purposes, based on March 22’s (the last practicable date) 3.5 sen closing price, the theoretical adjusted reference price of its consolidated shares would be 35 sen upon the consolidation exercise’s completion, while warrants B’s adjusted reference price would be 15 sen versus 1.5 sen on March 22.

Upon completion of the share consolidation, Destini’s share base will be slashed to 499.06 million shares under a minimum scenario, or 665.41 million shares under the maximum scenario — assuming full exercise of outstanding warrants B.

As at March 22, the group’s share capital stood at RM612.91 million, comprising 4.99 billion shares. It had 1.66 billion outstanding warrants B.

Destini reasoned that the share consolidation would enhance the company’s share capital structure by way of increasing its share price which may in turn reduce share price volatility.

The exercise, which is subject to requisite approval of Bursa Securities as well as shareholders at an extraordinary general meeting to be convened, is expected to be completed by the second quarter of 2024.

Destini has appointed UOB Kay Hian Securities (M) Sdn Bhd as the principal adviser to the company for the proposed share consolidation exercise.

Shares in Destini last traded at 40 sen on Tuesday (March 26), valuing the company at RM199.62 million.