EPI (Holdings) (HKG:0689) is proposing a capital reorganization involving a share consolidation and capital reduction, according to a Tuesday bourse filing.
Under the consolidation, every 10 issued shares of the company will be consolidated into one share. That would bring down the company's existing 5.2 billion issued shares to 524 million.
The oil explorer will then reduce the par value of each issued consolidated share from HK$0.10 to HK$0.01 by canceling HK$0.09 of the paid-up capital on each consolidated share.
After the capital reduction, EPI will have an authorized share capital of HK$1 billion divided into 100 billion new shares with a par value of HK$0.01 each, with 524,034,404 new shares in issue.
The move aims to boost the stock price of EPI as the recent trading prices of its shares have fallen below HK$0.10, which is considered trading at extremity under Hong Kong listing rules.
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