KUALA LUMPUR (Jan 7): Shares of The Media Shoppe Bhd (TMS) slumped as much as 27.3% in morning trades after it proposed a share capital reduction and two-into-one share consolidation.

Yesterday, the internet-based applications and solutions provider proposed to reduce its share capital by cancelling 5 sen of the par value of every existing 10 sen share.

It also proposed to consolidate, after the capital reduction, every two shares of 5 sen each into a new share of 10 sen each.

As at 10.48 am today, TMS slipped 0.5 sen or 9% to 5 sen with some 25.2 million shares done. It had earlier fallen to a low of 4 sen.

InterPacific Securities’ remisier Sam Ng told theedgemarkets.com that the corporate exercises might be an attempt by the firm to recoup shares and create trading volume.

“Some investors may be trying to unload their shares, while others are trying to buy in,” he told over the telephone.

TMS told Bursa Malaysia yesterday that the proposed corporate exercises were part of its "on-going efforts" to strengthen its financial position.

It said its earnings per share would not be materially impacted for the financial year ending Dec 31, 2015.