VCI Global announces reverse stock split to meet Nasdaq rules

Published 01/04/2025, 16:38
VCI Global announces reverse stock split to meet Nasdaq rules

KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG), a holding company with interests in various tech sectors, has announced a reverse stock split of its common stock, effective on April 3, 2025. The move aims to boost the market price per share to comply with Nasdaq’s minimum bid price requirement for continued listing. Currently trading at $0.35, the stock has experienced significant pressure, declining over 76% year-to-date according to InvestingPro data.

The reverse stock split will be executed at a ratio of 1-for-20, significantly reducing the number of shares from about 54.5 million to roughly 2.8 million. Shareholders will not receive fractional shares; instead, any fractions will be rounded up to the nearest whole number. The company’s common stock will trade on the Nasdaq Capital Market under the same ticker symbol ’VCIG’ but with a new CUSIP number. InvestingPro analysis indicates the stock is currently undervalued, with strong fundamentals including a healthy 71% gross profit margin and a low P/B multiple of 0.2x.

Vstock Transfer, LLC will serve as the exchange agent for the reverse stock split. Stockholders with physical certificates will receive instructions on exchanging their certificates for book-entry shares. Those with shares held through brokers or in book-entry form will have their accounts automatically updated to reflect the change.

This corporate action is part of VCI Global’s efforts to maintain its listing on the Nasdaq Capital Market. The company, which has a presence in Asia, Europe, and the United States, focuses on AI & Robotics, Fintech, Cybersecurity, Renewable Energy, and Capital Market Consultancy.

The information in this article is based on a press release statement from VCI Global Limited.

In other recent news, VCI Global Limited announced the launch of DeepAI, an AI platform designed to simplify the adoption of large language models for businesses. This AI-as-a-service model offers scalable solutions tailored to different organizational needs, emphasizing data security and regulatory compliance. Additionally, VCI Global has secured $33 million in contracts for deploying advanced AI infrastructure, enhancing computing capabilities for clients in high-growth industries. The company is also expanding its market presence across Asia and the Middle East, with plans to open new offices and launch several AI and cybersecurity products. Notably, VCI Global is set to release an AI Integrated Server and AI Cloud Platform, aimed at reducing the cost and complexity of AI adoption for businesses. Furthermore, the company has introduced V Gallant CyberSecure, a cybersecurity solution featuring AI-driven threat detection and military-grade encryption. These developments reflect VCI Global’s commitment to technological innovation and market expansion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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