Samurai 2K Aerosol, which produces aerosol paint, is proposing a one-to-three stock split so that it can have more flexibility to cater to investors with different investment profiles.
“Furthermore, the reduced price of each board lot of shares would make the shares more accessible and attractive to both existing and potential investors and hence enhance the trading liquidity of the shares over time,” says the company on June 15.
Shareholders should note, however, that there can be no assurance that the intended effect of the proposed share split above can be achieved, nor is there any assurance that such effect can be sustained in the longer term, the company adds.
Based on the lowest daily weighted average price of the shares of 97.94 cents for trades done between April 28 2021 to May 27, the theoretical post-split price of the shares is 32.65 cents.
The one-for-three share split will also see the number of Samurai 2K shares go from 109.9 million now to 329.76 million shares.
The exercise is subject to the approval of shareholders at an EGM to be called, among others.
For the year ended March 31 2021, the company reported a 243.6% y-o-y jump in earnings to RM17.5 million. Revenue in the same period was up 75.4% to RM110.6 million.
Samurai 2K shares closed June 15 at $1.02, down 0.97%.
It listed back in 2017 at 20 cents each.
