Shareholders who hold less than 20 existing shares as at the record date will not be entitled to any consolidated shares and will no longer be shareholders upon the completion of the consolidation.
Affected shareholders may consider purchasing additional shares to increase the number of shares as at the record date, which has yet to be announced.
As at Feb 26, Seatrium has an issued and paid-up share capital of $8.58 billion comprising 68.2 billion outstanding shares on the market. After the consolidation, Seatrium’s shares will be reduced to 3.4 billion.
The proposed share consolidation is still subject to the approval of Seatrium’s shareholders at its upcoming annual general meeting (AGM).
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According to Seatrium, the decision to consolidate its shares was to reduce the volatility in its share price, which were trading between 8.6 cents and 14.6 cents in the past six months from Feb 26.
It added that this was to reduce fluctuations in its market capitalisation and reduce the percentage transaction cost for trading in each board lot of shares.
Seatrium also believes that the move may "facilitate corporate actions and increase market interest and activity in the shares, and generally make the shares more attractive to investors".
Shares in Seatrium closed at 9.2 cents on March 12.
