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Haitian Hydropower (8261) proposes 4:1 stock split
Company circular, 15-Apr-2016
The board fails to state that this will double the percentage minimum bid-offer spread. It will reduce the price from $1.32 (where the spread is $0.01) to $0.33 (where the spread is $0.005), so the spread rises from 0.76% to 1.52%. That is negative for liquidity. If they are concerned about the cost of a board lot (although at $5280, it is a reasonable quantum) then they should halve the board lot instead. Note that in 2012 the SFC issued a concentration warning in this stock.
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