Globaltec plans 20-to-1 share consolidation, free warrants

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KUALA LUMPUR (Sept 5): Globaltec Formation Bhd plans to consolidate the company's shares on the basis of 20 shares held on an entitlement date to be fixed, into one share, which could raise its share price to 90 sen from 4.5 sen now.

Concurrently, it plans to issue 67.27 million free warrants on the basis of one warrant for every four consolidated shares held on the entitlement date.

In a filing with Bursa Malaysia today, the investment services provider said the proposed share consolidation might increase the company's profile among investors and lead to more attention by research houses and fund managers.

The warrants issue is intended to reward its shareholders, who can raise their equity in the company, as well as strengthen the company's capital base and provide additional working capital as and when the warrants are exercised.

Globaltec said upon completion of the proposed share consolidation, its issued share capital would be RM538.17 million comprising 269.09 million consolidated shares, as opposed to 5.38 billion shares as at Sept 4, 2018.

The proposals are expected to be completed by the fourth quarter of 2018.

The group's share price closed unchanged at 4.5 sen today, for a market capitalisation of RM242.18 million.