Scomi Energy plans capital reduction, share consolidation

11 Oct 2019 / 15:32 H.

PETALING JAYA: Scomi Energy Services Bhd has proposed a reduction of its issued share capital by RM560 million and a share consolidation of every five existing shares into one consolidated share.

As of September 20, Scomi Energy’s issued share capital was RM1 billion comprising 2.34 billion shares.

“The proposed share capital reduction will give rise to a credit of RM560 million, which will be used to set-off against the accumulated losses of the company,” it said in the filing.

“The reduction of the accumulated losses of the company is expected to enhance its credibility with its bankers, customers, suppliers, investors and other stakeholders and also provide a stronger financial platform for future growth,” it added.

For its consolidated financial period from April 1, 2018 to June 30, 2019 Scomi Energy posted a net loss of RM93.04 million, with a revenue of RM645.32 million.

Scomi Energy also said the reduction in the number of shares as a result of the proposed share consolidation could potentially reduce the market price volatility of the shares as a result of higher theoretical market price.

The proposals are expected to be completed by the first quarter of next year.

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