KUALA LUMPUR (March 16): Vizione Holdings Bhd announced today it is planning a seven-into-one share consolidation exercise.

In a filing with the stock exchange, the construction group said the proposal is aimed at fetching a higher trading price for its shares, to attract more investors, research houses and fund managers.

The consolidation, it added, "would lead to a reduction in the number of shares available in the market, and may reduce the volatility of the trading market of Vizione shares".

Based on Vizione's price of 15.5 sen as at the latest practicable date of March 5, the share consolidation is expected to bring its theoretical adjusted reference share price to RM1.085.

For illustration purposes, its issued share capital of RM397.02 million comprising 3.54 billion shares will be consolidated into 505.53 million shares, assuming none of the outstanding convertible securities are granted or exercised into new shares prior to the exercise.

The proposed exercise is also expected to result in an adjustment to the reference price of its existing warrants, Warrants-B and Warrants-C, but will not have any impact on the total market value of these securities held by shareholders.

Based on the price of Warrants-B and Warrants-C of 2.5 sen and 11 sen respectively as at March 5, the exercise will increase their theoretical adjusted reference price by sevenfold, to 17.5 sen and 77 sen respectively.

Vizione said it is also proposing amendments to the by-laws governing the company's existing employee share issuance scheme, to streamline implementation of the share consolidation.

The group expects the proposals to be completed by the second quarter of this year.

Vizione's share price slid half a sen or 3.13% to close at 15.5 sen today, with a total of 12.55 million shares done, giving it a market capitalisation of RM548.50 million.

The stock has a 200-day average trading volume of 12.57 million shares as it has been trading in a 12-month range between 11 sen and 19 sen.