KUALA LUMPUR (July 26): Luxchem Corp Bhd proposed a share split involving the division of one share into three units to make the stock more affordable for investors.

In a statement to Bursa Malaysia today, industrial chemicals distributor Luxchem said the share split would result in the stock's price adjustment.

"The adjustment in the market price of Luxchem shares as a result of proposed share split is expected to result in the split shares being more affordable in order to appeal to a wider group of public shareholders and investors. The proposed share split may also improve the trading liquidity of Luxchem shares by increasing the number of shares in issue.

"Following the completion of the proposed share split, the theoretical market price of each share will decrease by 3 times and the total number of shares in issue will be increased by the corresponding ratio. Notwithstanding this, shareholders should note that the proposed share split is not expected to alter the total value of the split shares held by them," Luxchem said.

At 12:30pm, Luxchem shares settled unchanged at RM2.22 for a market value of RM621.91 million based on an issued base of 280.139 million shares. The stock saw 174,000 shares traded.

Luxchem also announced today its results for the second quarter ended June 30, 2017 (2QFY17) and declared a dividend. In separate statements to the exchange, Luxchem said 2QFY17 net profit fell to RM8.66 million from RM13.03 million a year earlier. Revenue rose to RM203.11 million from RM175.85 million.

Luxchem said 1HFY17 net profit climbed to RM22.27 million from RM20.03 million a year earlier. Revenue was higher at RM421.25 million versus RM335.82 million.

Luxchem declared a dividend of 2.5 sen a share for the quarter in review. The company said the ex and payment dates would fall on Aug 29 and Sept 29 this year respectively.