Premium Catering announces 1:9 reverse stock split effective July 22

SINGAPORE - Premium Catering (Holdings) Limited (NASDAQ:PC), a micro-cap company with a market value of $17.96 million, announced Friday that it will implement a 1:9 reverse stock split of its Class A Ordinary Shares, scheduled to take effect when markets open on July 22, 2025. The stock has declined over 83% in the past year, trading near its 52-week low of $0.58. InvestingPro analysis indicates 15 additional key insights about the company’s performance and outlook.

The company, which specializes in Halal food catering services in Singapore, will reduce its outstanding Class A Ordinary Shares from 18,652,750 to 2,072,528 following the consolidation. The record date for the reverse split is set for July 21, 2025. With revenue of $3.34 million and a gross profit margin of 15.05%, Premium Catering operates with moderate debt levels and maintains a healthy current ratio of 2.22.

Premium Catering will continue trading under its existing ticker symbol "PC" on the Nasdaq Capital Market after the split takes effect.

The company initially disclosed plans for the share consolidation on July 11, according to the press release statement.

Premium Catering primarily provides budget prepared meals to foreign construction workers in Singapore, with additional operations including food stalls, buffet catering services for private functions, and delivery services. The company has been operating in Singapore’s catering industry for over 11 years, focusing on Indian, Bangladeshi, and Chinese cuisine. For detailed financial analysis and real-time updates, visit InvestingPro for exclusive insights and advanced metrics.

Since 2019, the company has utilized smart incubators—described as custom-made compartmentalized, heated and insulated food vending lockers—to deliver prepared meals to customers.

In other recent news, Premium Catering (Holdings) Limited has announced a share repurchase program valued at up to $1 million. This initiative, authorized by the company’s Board of Directors, allows for the repurchase of the company’s ordinary shares through various methods, including open market purchases and privately negotiated transactions. The company emphasized that the repurchase will comply with federal securities laws and will be funded through existing cash reserves or future cash flows. According to Executive Director Yu Chun Yin, this move reflects the Board and Management’s belief that the share price may be undervalued compared to the company’s long-term potential. The program does not have a set duration and does not obligate the company to buy back a specific number of shares. The volume, timing, and manner of repurchases will be influenced by market conditions and other factors, with the company retaining the flexibility to modify or discontinue the program at any time.

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