ASIASEC PPT (00271) proposes a "10-into-1" share consolidation, followed by a rights issue on a "1-for-1" basis.

ASIASEC PPT (00271) announced that the board proposes to consolidate every 10 issued existing shares in the company's share capital into 1 consolidated share in the company's share capital. The board proposes that, subject to and conditional upon the share consolidation becoming effective, the board lot size for trading on the Stock Exchange be changed from 1,000 existing shares to 5,000 consolidated shares. Subject to the share consolidation becoming effective, the company proposes to raise gross proceeds of up to approximately HK$151 million by issuing 124 million rights shares at a subscription price of HK$1.22 per rights share, on the basis of 1 rights share for every 1 consolidated share held by qualifying shareholders on the record date (assuming no change in the number of issued shares on or before the record date and all qualifying shareholders fully subscribing for their respective allotted rights shares). Assuming the rights issue is fully subscribed, the net proceeds from the rights issue are expected to be approximately HK$149.6 million, which are intended to be applied as follows: (i) approximately HK$100 million (representing approximately 66.86% of the estimated net proceeds from the rights issue) will be used to repay part of the group's bank borrowings; (ii) approximately HK$30 million (representing approximately 20.06% of the estimated net proceeds from the rights issue) will be used to expand the group's property investment business; and (iii) approximately HK$19.56 million (representing approximately 13.08% of the estimated net proceeds from the rights issue) will be used as general working capital of the group.