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荣丰集团亚洲(08526.HK)拟“4合1”合并股份

Rongfeng Group Asia (08526.HK) proposed "4 in 1" Consolidated shares

財華社 ·  Dec 5, 2021 23:02

[Caihua News] Rongfeng Group Asia (08526.HK) announced the consolidation of issued and unissued existing shares of HK $0.010 each in every 4 shares of the company's share capital into 1 consolidated share of HK $0.04 each in the share capital of the company. The merger of shares shall be confirmed only after the approval of the shareholders by voting at the special general meeting of shareholders.

At present, the number of shares traded on the Stock Exchange is 10000 shares. After the share merger takes effect, each trading unit of the consolidated shares will be maintained at 10000 consolidated shares.

Based on the closing price of HK $0.218 per share quoted on the Stock Exchange on 3 December, the value of each hand of 10000 shares is HK $2180, and assuming the share consolidation has taken effect, the theoretical market value of each hand of 10000 consolidated shares will be HK $8720.

In view of the recent buying and selling prices of the shares, the Board is of the view that the share merger will enable the company to comply with the trading requirements of the GEM listing rules and reduce the overall transaction and processing costs of buying and selling shares as a proportion of the market value of each share, as most banks and securities firms will charge the lowest transaction cost per transaction. With the corresponding increase in the buying and selling price of the merged shares, the Board believes that for more investors, the share consolidation will make the investment shares more attractive, thus further broadening the company's shareholder base.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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