KUALA LUMPUR (Oct 3): Harrisons Holdings (Malaysia) Bhd (KL:HARISON) has proposed to split each of its shares into five shares in a move to improve the trading liquidity of the shares.

The share split will take place based on an entitlement date to be determined later, and is expected to be completed by the fourth quarter of this year, the group said in a filing with Bursa Malaysia.

As at Sept 20, 2024, Harrisons said its issued share capital stood at RM68.52 million, consisting of 68.49 million shares, which include 13,000 treasury shares.

Upon completion of the share split, Harrisons’ issued share capital will remain unchanged. However, the existing 68.49 million shares will be subdivided and enlarged into 342.45 million subdivided shares, which includes 65,000 treasury shares.

The theoretical adjusted reference price for the subdivided shares is RM1.67, based on the closing price of RM8.35 on Sept 20. Using the three-month volume-weighted average price of RM9.132 per share on the same date, the adjusted reference price after the share split is estimated at RM1.826.

In addition to improving the trading liquidity of its shares, Harrisons said the proposed share split could encourage greater participation from a broader group of public investors, as the shares will become more affordable after the completion of the exercise.

RHB Investment Bank has been appointed as the sole principal adviser for the proposed share split.

Harrisons, which is 42.33% controlled by Bumi Raya International Holding Company Ltd, has its roots in Indonesia and is involved in the trading of consumer, engineering and chemical products, as well as building materials.

Shares of Harrisons closed unchanged at RM8.34 on Thursday, giving the Main Market-listed group a market capitalisation of RM571.1 million.