-- 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.