KING INTL INV(00928): It is suggested to carry out a stock consolidation and change the trading unit to 5000 shares per lot.

KING INTL INV (00928) announced that the board of directors proposed a stock consolidation, with a ratio of 10 existing and unissued shares with a par value of HK$0.05 each to be consolidated into 1 share with a par value of HK$0.50 each. The stock consolidation must be approved by the shareholders at a special general meeting before it can take effect. As of the date of this announcement, the existing shares are traded in units of 20,000 shares per trade on the stock exchange. The board of directors proposed that after the stock consolidation takes effect, the trading unit on the stock exchange be changed from 20,000 existing shares to 5,000 consolidated shares. The company proposes that, subject to the stock consolidation becoming effective, shareholders will be entitled to subscribe for 2 rights shares for every 1 consolidated share held on the record date, at a subscription price of HK$0.5 per rights share. This is to raise a maximum of approximately HK$185 million (before expenses) by (i) issuing a maximum of 370,085,012 rights shares to eligible shareholders (assuming no exercise of warrants up to the record date, no change in the issued share capital prior to the record date, and all eligible shareholders subscribing for their entitlement of rights shares) and (ii) issuing a maximum of 387,293,012 rights shares to eligible shareholders (assuming all warrants have been exercised, no change in the issued share capital prior to the record date, and all eligible shareholders subscribing for their entitlement of rights shares). The rights issue will not be extended to ineligible shareholders. The net proceeds from the rights issue are estimated to be approximately HK$184 million (assuming no change in the issued share capital prior to the record date and all eligible shareholders subscribing for their entitlement of rights shares) and approximately HK$192 million (assuming all warrants have been exercised, no change in the issued share capital prior to the record date, and all eligible shareholders subscribing for their entitlement of rights shares).