It will be down to the said value instead of $0.10 as announced previously.
Fuxing China Group Limted announced in a bourse filing their intention to reduce the par value of its shares from $5 to $0.02 instead of $0.10 as they had said previously.
They said that this will provide the company with "more flexibility to issue shares in the future should fund-raising opportunities or requirements arise and facilitate corporate actions which may require the issuance of new shares, such as a rights issue or private placement."
The issued and paid-up share capital of the company will be reduced by $87m through the cancellation of $4.98 from each issued share with a par value of $5.
Each share will be considered fully paid with a reduced par value of $0.02 on the effective date of the proposed capital reorganisation.
Additionally, the share premium account of the company will be reduced from $53.6m to zero by cancelling the entire sum standing to the credit of the share premium account.
With this, the aggregate sum of $140.7m in the contributed surplus account of the company will be utilised to set-off against any accumulated losses in full.
The financial impact on the company's consolidated net tangible assets (NTA) per share and its gearing is computed on the assumption that the proposed capital reorganisation was completed on 31 December 2023.
Meanwhile, the financial effects on the earnings per share (EPS) of the company are computed on the assumption that the proposed capital reorganisation were completed on 1 January 2023.
