China Dredging Environment Protection (HKG:0871) is proposing to implement a capital reorganization in the form of a capital reduction and share sub-division, according to a Feb. 14 filing with the Hong Kong bourse.

Under the capital reduction, the environmental services company will reduce the nominal or par value of each issued share to HK$0.02 from HK$0.20 previously by canceling the paid-up capital to the extent of HK$0.18.

Following this, each authorized but unissued share of nominal or par value HK$0.20 will be subdivided into ten new shares of nominal or par value of HK$0.02 each.

The credit of nearly HK$270.7 million arising from the capital reduction will be used to offset the accumulated losses of the company.