STERLING GP (01825) announced that the company proposes to implement a capital reorganization involving a share consolidation, capital reduction, and share subdivision, along with a change in the board lot size for trading.

The Board has recommended a share consolidation on the basis of every 10 issued and unissued shares with a par value of HK$0.04 each being consolidated into 1 consolidated share with a par value of HK$0.40 each.

Following the effectiveness of the share consolidation, the Board proposes to implement a capital reduction and a share subdivision, whereby: (i) the company's issued share capital will be reduced by canceling the paid-up capital, with a reduction of HK$0.39 per then-issued consolidated share, so that the par value of each issued consolidated share will be reduced from HK$0.40 to HK$0.01; (ii) immediately after the capital reduction, each authorized but unissued consolidated share with a par value of HK$0.40 will be subdivided into 40 new shares with a par value of HK$0.01 each.

As of the date of this announcement, the shares are traded on The Stock Exchange of Hong Kong in board lots of 2,500 shares each.

Following the effectiveness of the capital reorganization, the board lot size for trading the new shares will be changed from 2,500 shares to 2,000 new shares.