KUALA LUMPUR (Sept 27): Property developer Talam Transform Bhd (KL:TALAMT) has proposed to consolidate every five existing shares held by its shareholders into one share, with the entitlement date to be determined later.

In a bourse filing on Friday, Talam said the consolidation may reduce the volatility of its share price, as they are currently trading at a low, so much so that even a small change can have a significant percentage impact.

Based on its shares' closing price of 2.5 sen on Sept 20 (the last practicable date), its share price could theoretically be adjusted to 12.5 sen post-consolidation. On completion of the exercise, Talam’s share base will be reduced to 944.9 million shares from 4.72 billion shares as of Sept 20, for a share capital of RM866.8 million.

Talam also wants to undertake a capital reduction by cancelling RM650 million of its issued share capital to offset accumulated losses of RM624.37 million at the group level, leaving it with retained earnings of RM24.4 million that Talam said will be used in a manner deemed fit by the board.

The proposed capital reduction will result in the company’s share capital being reduced to RM257.34 million, assuming the full exercise of the employees’ share option scheme, which the group also plans to establish.

Talam has also proposed a private placement of up to 20% of its total issued shares, at an issue price to be determined.

Based on an indicative price of 11.3 sen per placement share, Talam could raise RM21.33 million, which it plans to use to repay borrowings, and for working capital.

The proposals, subject to approval from Bursa Securities and Talam's shareholders, are expected to be completed by the second quarter of 2025.

Shares in Talam last traded at 2.5 sen, giving it a market capitalisation of RM98.42 million.