Alco (HKG:0328) is looking to consolidate its shares and raise further capital via a rights issue, according to a Tuesday Hong Kong bourse filing.
Shares of the electronics seller fell over 11% in morning trade Wednesday.
The company proposed a 1-for-10 share consolidation to reduce the number of shares in issue to 11,455,686 from 114,556,865.
Meanwhile, the company said it would seek to raise up to HK$148.5 million via a rights offering.
The issue would offer eligible shareholders four new shares for every one consolidated share they hold in the company at HK$3.24 each.
The company would have 45,822,744 shares available for issue under the rights offering.
Any shares that are unsubscribed will be offered to Advent Securities (Hong Kong) for placement on a best effort basis by Nov. 4.
Funds raised will be used to repay debt and for general working capital, Alco said.
The company expects to call a meeting of shareholders on Aug. 22 to seek approval for the share consolidation and rights offering.
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