The Hong Kong Stock Exchange has approved Imperial Pacific International’s share consolidation, which took effect on Thursday.
The company is merging every 20 of the current shares, each worth HKD0.0005 into one consolidated share worth HKD0.01. The consolidation will drop the total share amount to just below 7.15 million, from the 142.98 million currently issued. After the consolidation, the shares would trade in lots of 20,000.
The group notes that the move “will not have any material adverse effect on the financial position of the Group”, stating that “there are no reasonable grounds for believing that the Company is, or after the Share Consolidation would be, unable to pay its liabilities as they become due”. The consolidation is expected to become effective on September 16th, while from October 25th trading will “only be in Consolidated Shares”.
The company hopes the move will “bring about a corresponding upward adjustment in the trading price per Consolidated Share” as well as enabling the company “to comply with the trading requirements” of the exchange.
