Soilbuild proposes share split to improve liquidity, raise interest

Mainboard-listed property developer Soilbuild is proposing a share split of each ordinary share in the firm into two ordinary shares.

Currently, Soilbuild has an issued and paid-up share capital of S$58.4 million, divided into 217.3 million issued shares.

After the split, the paid-up share capital remains, but the number of shares will double to 434.6 million.

Soilbuild said the share split will improve liquidity of its shares, increase retail interest and broaden its shareholder base.

The proposal comes as Soilbuild announced an 11 per cent on-year drop in fourth quarter net profit to S$27.22 million.

But for its full 2009 financial year, the property developer saw a 10 per cent on-year rise in net profit to a record S$84.3 million. The record net profit came on the back of a 34 per cent increase in turnover to S$320.1 million.

Looking ahead, Soilbuild expects to remain profitable this year, with five projects due for completion this year.

The share split proposal is subject to shareholders’ and regulatory approval.

Source : Channel NewsAsia – 10 Feb 2010