KUALA LUMPUR (Feb 14): Minda Global Bhd is planning to consolidate every 10 shares in the company into 1 new consolidated share, to shed the impression that its shares are just a "penny stock".

The proposed exercise will see Minda Global’s share base be consolidated to 123.99 shares from 1.24 billion shares presently.

Minda Global's shares last traded at 5.5 sen apiece. At this price, the exercise will theoretically see its share price adjust to 55 sen per share.

“As the company has a large share base and a relatively low trading price range, the board noted that a small movement in the share price may result in a high percentage of movement in the share trading price,” said Minda Global in a stock exchange filing today.

“The proposed share consolidation is expected to bring about a corresponding upward adjustment in the trading price of the shares.

“This is expected to enhance Minda’s corporate image and will encourage investors to view the consolidated shares as a long term investment rather than a 'penny stock' prone to speculative pressures,” it said.

The proposal is expected to be completed in the second quarter of 2020.

The counter last closed up half a sen to 5.5 sen per share, giving it a market capitalisation of RM68.91 million.