Shipper Jinhui plans share split
Bulk shipping firm Jinhui Holdings is proposing a one-to-10 share split and a change in its board lot size to improve the liquidity of its stock, the company said in a statement yesterday.
The plan, which will halve the price of each lot - the minimum amount of shares that can be traded - to $100, is intended to help the firm widen its shareholder base.
Under the proposal, each existing share with a nominal value of $1 will be divided into 10 new shares with a nominal value of 10 cents.
At the same time, the size of each board lot will be increased to 1,000 shares from 200. The plan is subject to shareholder approval at a meeting on May 20.
Trading of Jinhui shares has averaged only 492,114 a day over the past six months.
The average daily volume for fellow dry-bulk carrier Pacific Basin Shipping, which has a market capitalisation three times the size of Jinhui's, was 10.7 million shares.
Yesterday, Jinhui's share price fell 1.84 per cent to $26.65 with 169,800 shares changing hands. Pacific Basin fell 0.67 per cent to $3.70 on 14.32 million shares dealt.
