KUALA LUMPUR (Aug 20): Omesti Bhd (KL:OMESTI) has proposed changing its name to Tegra Bhd, as well as consolidating every five existing shares into one to reduce share price volatility. 

Under the proposed share five-to-one consolidation exercise, Omesti's 2.32 billion issued shares would be reduced to 464.48 million shares, assuming none of its 131.76 million outstanding warrants are exercised beforehand, according to a bourse filing on Thursday.

“With a lower number of shares available, it is expected to reduce the volatility of the share price of the shares given that Omesti shares were traded at a market price range from a low of 5.5 sen to a high of 13 sen for the last 12 months before Aug 17,” Omesti said.

Based on its closing price of 8.5 sen on Aug 17 — the latest practicable date of the filing — its theoretical adjusted reference share price would be 42.5 sen post-share consolidation.

The exercise would not theoretically affect the total market value of shareholders' holdings.

The outstanding warrants, if not exercised prior to the entitlement date to be determined, will also be consolidated. The warrants will be adjusted to 26.35 million from 131.76 million, while the exercise price will rise to 50 sen each from 10 sen.

The share consolidation is subject to approvals from Bursa Malaysia and shareholders at an extraordinary general meeting, and is expected to be completed by the fourth quarter of 2026.

Meanwhile, the name change to Tegra Bhd is also subject to shareholders’ approval at an extraordinary general meeting, it said in a separate filing, adding that the Companies Commission of Malaysia approved the reservation of the proposed name on Aug 18.

The name Tegra combines the Malay word teguh, meaning strength and resilience, with integra, meaning integrity, Omesti noted.

The company said the name symbolises "trust, completeness and reliability", and represents "a new phase of growth, stronger institutional positioning, a more robust balance sheet, and a commitment to delivering sovereign digital infrastructure and next-generation technology solutions to government and enterprise stakeholders".

Shares of Omesti ended unchanged at 8.5 sen on Thursday, valuing the company at RM197.41 million.