HKG:2699

Xinming China Proposes Share Consolidation; Shares Slump 10%

Xinming China (HKG:2699) proposed a share consolidation on the basis of 1 new share for every 25 held in the company, according to a Hong Kong bourse filing Thursday.The move will reduce the firm's existing shares from 93.9 million to around 3.8 million consolidated shares.The firm plans to undertake a rights offering following the share consolidation to raise up to HK$106 million.The firm will offer eligible shareholder six rights shares for every consolidated share owned in the firm. The rights offering will be priced at HK$4.70 per rights share.Shares of the company slumped 10% in recent trade.