PETALING JAYA: Parlo Bhd
has proposed to reduce its share capital by RM42mil to eliminate its accumulated losses.
The corporate exercise is expected to put the travel management company in an accumulated earnings position of RM19.93mil. Parlo also plans to undertake share consolidation, whereby every three existing ordinary shares will be consolidated into one share.
This is intended to raise its share price ahead of the issuance of rights shares, which was also proposed yesterday.
Renounceable rights issue of up to 300.58 million Parlo shares will be done on the basis of one rights share for every one consolidated share. The exercise seeks to raise cash mainly for the travel and tours business segment to pare down borrowings, promotion and repayment to trade creditors.Together with the rights shares, up to 75.14 million free warrants on the basis of one warrant for every four rights shares will also be undertaken.
