The SGX-ST has given Memiontec Holdings its in-principle approval for the listing and quotation of its new shares on the Catalist board.
Memiontec, on March 23, announced that it is proposing a three-for-one stock split. The record date will be determined by the board. The board had previously indicated that it will fix the record date for the proposed share split subsequent to the date of the first and final dividend.
As at March 23, the company has an issued and paid-up share capital of $12.6 million comprising 220,257,000 shares.
Following the split, an additional 440,514,000 shares will be issued, bringing the total number of shares in Memiontec to 660,771,000.
According to Memiontec, the reduced price following the proposed share split will make each share more affordable. The lower price will then encourage “greater participation” by general investors and will give them more flexibility in terms of the size of the trades to investors with different investment profiles.
“The reduced price of each board lot of shares could also make the shares more accessible and attractive to investors and enhance the trading liquidity of the shares,” reads the March 23 statement put out by Memiontec.
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The number of shareholders after the proposed share split may also increase with the higher number of shares available, adds the company.
Shares in Memiontec closed 1.5 cents lower or 1.73% down at 85 cents on March 31.
/Update
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Memiontec, on May 9, announced that the last day for the trading of shares on the SGX-ST on a pre-share split basis will be on May 19, 5pm.
The record date for the share split will be on May 23, at 5pm, while the effective date of the split will take place on May 24, at 9am.
