Widetech predicts one to five stock split after more than 490% share price rise
KUALA LUMPUR (Aug 20): Widetech (Malaysia) Bhd, a precision spring manufacturer and management services provider, has proposed a split of one common share into five shares.
The eligibility date will be announced later, the company said in a filing with Bursa Malaysia.
Widetech currently has issued share capital of RM44.89 million comprising 44.75 million shares, he said in an exchange document.
The theoretical stock price after the split would be 70.6 sen per share based, for illustration purposes, on the last traded market price of RM 3.53 per share.
“In addition, based on the lowest three-month daily volume-weighted average price (VWAP) of Widetech shares through August 19, 2021 inclusive of RM2.7271, the ex-Widetech share price is RM0.5454 in accordance with the proposed action split, ”the group said.
Widetech said the proposed stock split aims to improve the liquidity of the company’s shares and expand its shareholder base.
The exercise is expected to be completed in the fourth quarter of calendar year 2021.
Widetech’s share price has gained 496% year-to-date. It hit a record high of 5.38 RM on July 9. It fell back to RM3.58 today giving it a market cap of RM160.22 million.