Focus Malaysia News Excerpt – Part 1

SHAREHOLDERS APPROVE SHARE CONSOLIDATION PLANS

After recording a strong set of results for its financial year ended May 31, 2018, Vizione Holdings Bhd is setting its sights on expanding its presence in the local construction industry and attracting larger investors to its counter.

Managing director Datuk Ng Aun Hooi says the company is particularly focusing on attracting fund houses to the construction and property player.

At the moment, individual investors form the bulk of its shareholders with a total of 34.6 % of its shares outstanding. Mutual fund investors form the second largest group of investors but hold a distant 2.2% of its shares.

The group took its first step towards this goal after it gained shareholders’ approval at its Sept 4 extraordinary general meeting for a share consolidation exercise, says Ng.

A near unanimous vote approved the management’s proposal to consolidate the current group share base. It will be on the basis of seven existing Vizione shares into one Vizione share.

Ng tells FocusM that the share consolidation exercise serves several purposes.

One, he says, is that Vizione’s share base is over three billion which is “a bit too liquid,” adding that even with the consolidation, the shareholding base will be still quite sizeable.

More importantly, the share consolidation exercise is deemed necessary to make the stock attractive to a larger pool of investors. The group believes the move will raise Vizione’s profile and put it on the radar of more research houses and fund managers.

“A lot of new investors or big local funds say they want to invest (in the company) but they keep telling me we are a penny stock.

“Therefore, we will consolidate so we will not be categorised as a penny stock,” says Ng.

“I believe that after the consolidation, the number of shares will be close to about 600 million and considered to be not too small a number.”

According to an Aug 13 circular to shareholders, Vizione’s issued share capital stood at RM418.64 mil comprising 3.69 bil shares (as of July 30).

Following the consolidation its share base will increase to an estimated 527.94 million shares.

The theoretical adjusted reference price per share would be 94.5 sen based on the last transacted market price of 13.5 sen, details the circular.

The exact number of consolidated shares will be determined based on the issued share capital of the company on the books closure date.