KUALA LUMPUR (Nov 3): ACE Market-listed LKL International Bhd climbed over 34.52% to an intraday high of 56.5 sen in early morning trade on Thursday (Nov 3), two weeks after the hospital and medical furniture manufacturer completed a 10-to-one share consolidation. 

At the closing bell, the counter had pared gains to end at 45.5 sen, still up 3.5 sen or 8.33%, valuing the company at RM44.21 million.

On Oct 17, LKL International completed the consolidation of 971.6 million shares into 97.16 million shares. This brought the company’s share price from 2.5 sen to 25 sen. 

Over the past 18-day period, the stock has climbed 82% from the closing price of 25 sen on Oct 17.

The share consolidation was approved by the company’s shareholders in an extraordinary general meeting (EGM) on Sept 20.

“The reduction in the number of shares available in the market may reduce volatility in the trading price of the shares,” LKL International said in the EGM’s circular to shareholders dated Sept 2.

Meanwhile, LKL International’s proposals to diversify into the pharmacy business, as well as undertake a renounceable rights issue with free warrants, also received the nod from shareholders during the EGM.

LKL International said that based on an illustrative issue price of 20 sen per rights share, it expects to raise up to RM58.3 million, with the bulk of the proceeds (RM57.2 million) earmarked to fund its diversification into the pharmacy business.

The company said that the diversification allows the group to undertake the pharmacy business on a bigger scale, as well as provide an additional revenue stream to the company.