Asian Micro Holdings Boosts Share Capital by Over 56% with Debt Capitalisation and Employee Bonus Shares — Major Corporate Action Set to Reshape Shareholder Landscape

Key Points of the Announcement

• Debt Capitalisation Completed: Asian Micro Holdings Limited has successfully completed its proposed debt capitalisation exercise, converting outstanding debt into equity.
• Significant Share Capital Increase: The company’s total issued share capital has surged from 1,714,656,597 shares to 2,680,958,597 shares — an increase of approximately 56%.
• Employee Bonus Shares: In conjunction with the debt capitalisation, bonus shares have been issued and allotted to employees, rewarding and incentivising the workforce.
• Listing Date: Both the newly issued conversion shares and employee bonus shares are expected to be listed and quoted on the SGX Catalist at 9:00 a.m. on 24 October 2025.
• Share Rights: The new shares rank pari passu in all respects with existing shares, except for dividends or other distributions declared before the allotment date.

What Investors Need to Know

• Substantial Dilution: With the issuance of nearly 1 billion new shares, existing shareholders will face substantial dilution of their holdings unless they participated in the conversion or received bonus shares.
• Strengthened Balance Sheet: The debt capitalisation improves the company’s financial position by reducing debt levels and enhancing equity, potentially lowering financial risk and increasing long-term stability.
• Employee Alignment: The bonus share allotment to employees aligns staff interests with shareholders, potentially boosting productivity and corporate performance.
• Potential Share Price Volatility: The significant increase in share supply, coupled with changes in the company’s capital structure, could lead to heightened share price volatility around the listing date of the new shares.

Details for Investors and Shareholders

Asian Micro Holdings Limited has officially announced the completion of two critical corporate actions — the proposed debt capitalisation and the issuance of employee bonus shares. As a result, the company’s issued share capital has expanded dramatically, now standing at 2,680,958,597 shares from the previous 1,714,656,597 shares. This marks a transformative moment for the company, as the dilution effect will be felt across the existing shareholder base.

The conversion shares (arising from the debt capitalisation) and the employee bonus shares have been issued and allotted, and both will be admitted to trading on the Catalist board of the Singapore Exchange (SGX-ST) at 9:00 a.m. on 24 October 2025. Importantly, these new shares have equal standing with existing shares except that they are not entitled to any dividends, rights, or other distributions declared before their allotment date.

The Board, led by Non-Executive and Non-Independent Chairman Cheah Wee Teong, has emphasised that this major corporate action — which was previously outlined in company announcements and shareholder circulars — will significantly impact the company’s capital structure and shareholder composition.

Shareholders should take note that while the improved balance sheet and increased employee alignment could provide long-term benefits, the immediate effect will be considerable dilution for existing investors. Furthermore, with the sharp increase in the number of shares in circulation, there may be notable movements in share price, particularly as the market absorbs the additional supply.

Important Note

This announcement has been reviewed by the Company Sponsor, RHT Capital Pte. Ltd., but has not been examined or approved by the Singapore Exchange Securities Trading Limited. SGX-ST assumes no responsibility for the content of the document.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a qualified financial adviser before making any investment decisions. The information provided is based on publicly available company announcements and may be subject to change.

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