Poly Xverse Intelligent Technology (HKG:0209) said its board proposed a share consolidation on the basis of one consolidated share for every 10 issued and unissued shares, according to a Tuesday filing with the Hong Kong bourse.
The consolidation will reduce the company's authorized share capital from 70 billion shares to 7 billion consolidated shares.
The company's board also proposed changing the board lot size from 10,000 existing shares to 1,000 consolidated shares.
The consolidation is subject to shareholder approval and will help the company meet Hong Kong listing requirements.
Shares of the toy maker gained nearly 6% in late morning trade Wednesday.