Capital VC (HKG:2324) said its board proposed a 25-for-1 stock split, according to a Hong Kong bourse filing Wednesday.

Shares of the investment firm fell nearly 5% in recent Thursday trade.

The move will increase the company's authorized share capital from 800 million shares to 20 billion shares.

Meanwhile, the company's existing 450,128,249 shares at par value of HK$0.25 will turn to 450,128,249 shares at a par value of HK$0.01.

The credit of HK$108 million arising from the capital reduction will be applied to offset the company's accumulated losses which stood at HK$1.16 billion on March 31, 2025, Capital VC said.

Meanwhile, the company proposed a 1-for-1 rights offering to issue up to 450,128,249 new shares at HK$0.12 each to raise HK$52.9 million in net proceeds.

Funds raised will be used for working capital requirements.

The company said it will call a meeting of shareholders on Sept. 26 to deliberate on the proposals.