Markets
XDL-WC: Share consolidation spurs rally
Alan Voon | 19 May 2017 00:30
XiDeLang Holdings Ltd which was trading ex-consolidation on May 15 had a strong rally early last week with the mother share chalking up gains of 30% in the first three days of the week to close at 26 sen on May 17.

Its warrant XDL-WC gained even more as it rallied 42% in the first three days of the week. In fact, XDL-WC’s price has risen from two sen (the equivalent of eight sen ex-consolidation) to more than double at 17 sen in a week on May 17.

XiDeLang completed a four-to-one share consolidation exercise recently that resulted in the number of shares outstanding of the company being reduced to 673.9 million shares from almost 2.7 billion previously. The number of warrants outstanding was reduced by 75% to 220.3 million.

XiDeLang is predominantly a Jinjiang-based sports shoes manufacturer in China’s Fujian province. In its financial year ended Dec 31, the company’s revenue dwindled 7.5% to 503.83 mil renminbi (RM316.37 mil) from 544.81 mil renminbi a year ago.

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