KUALA LUMPUR : Hibiscus Petroleum Bhd proposes to undertake a proposed consolidation of every five existing shares into two consolidated shares, in an effort to minimise the fluctuations of its share price.
The company said over the past 12-month period up to and including July 31, 2023 have been trading at a closing price range of between RM0.82 and RM1.16. "The board considers that the low share price subjects Hibiscus Petroleum shares to vulnerability of speculative day-to-day trading, leading to share price volatility.
In this regard, the company said, the low share price may have been a contributory reason that price movements for Hibiscus Petroleum shares were relatively more volatile when compared with price movements for the FTSE Bursa Malaysia KLCI Index as well as brent oil over the same period, as shown below.
The proposed share consolidation, which will result in a theoretical adjusted reference price of RM2.325 per consolidated share.