Courage Marine proposes stock split to improve trading liquidity

Shipowner Courage Marine, which currently owns only two bulk carriers, has proposed to split one existing share into three in an attempt to boost trading liquidity.

Courage Marine has a primary listing on the Hong Kong Stock Exchange (HKSE) and a secondary listing on the Singapore Exchange (SGX).

“The board proposes to implement the proposed share subsidivision by subdividing every one existing share with par value of $0.18 each in the share capital of the company into three subdivided shares with par value of $0.06 each,” Courage Marine stated.

“There will be no change to the existing board lot size for trading in the shares upon the proposed share subdivision becoming effective,” the company said.

Courage Marine noted that on average the daily volume of existing shares traded on the HKSE was less than 900,000 existing shares, or less than 0.6% of total issued share capital.

“Upon the proposed share subdivision becoming effective, the par value of each existing share will decrease and the total number of shares in issue will increase. The proposed share subdivision is therefore expected to result in a downward adjustment to the trading price of the shares,” it said.

The board, however, believes that this exercise will improve the liquidity in trading of the shares, and thereby attract more investors and widen the company’s shareholder base.

The proposed effective date for the share subdivision on both HKSE and SGX is on 6 July 2017.

The dry bulk shipowner has been challenged by a difficult dry bulk shipping market, prompting the company to gradually dispose of its ships until the fleet has shrunk to just two 57,000-dwt ships – Zorina and Heroic.

Courage Marine had wanted to let go of Zorina at a price of $7.35m under a memorandum of agreement signed with a buyer Universal Ship Investment Corp. The agreement, however, has lapsed on Monday.

Earlier this month, Courage Marine mentioned that the sale of Zorina may jeopardise the company’s listing and shares trading on the HKSE as the exchange had informed that the company may not have assets of sufficient value to warrant a continued listing.

Posted 07 June 2017

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Lee Hong Liang

Asia Correspondent

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