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Swiber proposes share consolidation

Swiber proposes share consolidation
Offshore services firm Swiber Holdings has proposed a share consolidation so as to maintain compliance with listing requirement in Singapore.

Swiber has proposed for every two shares to be consolidated into one share, and the consolidated share will be traded in board lots of 100 consolidated shares.

For the past six months, Swiber shares have been trading in a range from SGD0.141 ($0.104) to SGD0.23, with the volume weighted average price (VWAP) of its shares at SGD0.1861 during the period.

The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) have introduced for mainboard-listed companies to have a minimum trading price (MTP) of SGD0.20 with effect from 2 March 2015, and the first assessment for compliance will be on 1 March 2016. The assessment of whether an issuer has met the MTP of SGD0.20 will be based on the issuer’s VWAP of its shares for the six months preceding the relevant date of review.

“The company is seeking to undertake the proposed share consolidation with the purpose of raising the minimum theoretical price of the shares so as to facilitate the company’s ability to satisfy and be in compliance with the MTP requirement,” Swiber said.

“On the assumption that the proposed share consolidation had been in place for six months prior to the date of this announcement, the theoretical adjusted six-month VWAP for the consolidated shares would be SGD0.3722,” it added.

The proposed share consolidation is subject to shareholders’ approval.

SGX said that the MTP requirement seeks to address risks of low-priced securities being more susceptible to excessive speculation and potential market manipulation.

A number of Singapore-listed offshore marine and shipping companies in Singapore are currently seeing their share prices trading at below SGD0.20, including BH Global, Otto Marine, FSL Trust, Mercator Lines, and Kim Heng Offshore.