KUALA LUMPUR: Pharmaniaga Bhd
has proposed to consolidate every five of its shares held by shareholders into one share.
In a filing with Bursa Malaysia, the company said upon completion of the proposed share consolidation, its resultant issued share capital will be RM243.43 million comprising 1.31 billion consolidated shares under the minimum scenario.
Meanwhile, the resultant issued share capital of Pharmaniaga will be RM267.47 million comprising 1.32 billion consolidated shares under the maximum scenario.
"The actual number of the consolidated shares after the proposed share consolidation will be determined based on the issued share capital of the company as at the entitlement date,” it said.
Pharmaniaga said the proposed share consolidation is both timely and opportune for the company to enhance its share capital structure following the completion of the regularisation plan to regularise the company’s Practice Note 17 (PN17) condition.
On March 16, 2026, the company announced that Bursa Malaysia Securities Bhd had approved the application for its upliftment from being classified as a PN17 company, effective March 17, 2026.
Pharmaniaga has a total of 6.56 billion issued shares, and the closing market price was at 24.5 sen per share as at the latest practicable date (LPD).
"The proposed share consolidation will result in a reduction in the number of shares available in the market which would also correspondingly increase the theoretical adjusted reference price of the shares by the corresponding ratio, giving it a more manageable share-based level.
"With a lower number of shares available, it is expected to reduce the volatility of the share price of the shares given that the Pharmaniaga shares were traded at a market price range from a low of 13 sen to a high of 34 sen for the last 12 months before the LPD,” it said.
In terms of pro forma effects, it said the proposed share consolidation is expected to reflect an increase in the net asset per share and increase in the earnings on a per share basis.
For illustrative purposes, based on the closing market price of 24.5 sen as at the LPD, the number of shares will reduce from 6.56 billion shares to 1.31 billion shares after the consolidation. The theoretical adjusted reference price will be RM1.225 per share with a total market value of RM1.61 billion.
The application to Bursa Securities for the proposed share consolidation shall be made within one month from the date of this announcement.
The Board expects the proposed share consolidation to be completed by the second quarter of 2026, subject to all required approvals being obtained.
Affin Hwang Investment Bank has been appointed as the principal adviser to the company for the proposed share consolidation. - Bernama
