ICT solutions company Data#3 (ASX:DTL) has proposed a ten-for-one share split in a bid to increase the liquidity of its stock.
Announcing the plan, Data#3 said its roughly 15.4 million shares on issue placed it in the lowest quartile of ASX-listed companies by issued shares.
The company argues that the split would increase the shares' affordability to potential investors as well as their liquidity.
Shareholders will vote on the proposal at the company's AGM on November 8. If the motion passes, the split will be effective from close of business on November 16. The proportion of the company each shareholder owns would remain the same.
Data#3 provides solutions including software licensing and asset management, hardware design and deployment and managed services to support outsourced IT infrastructure operations.
The company earned a post-tax profit of $15 million in FY11 – up 37.4% on a year earlier – from 16% higher revenue of $697.8 million.
In the company's annual report, published today, managing director John Grant said operating costs will likely increase in FY12 due to investments made to seed more long-term growth. But he added that there are signs of improving demand among NetComm's customers.
DTL shares climbed 5.99% on Friday to $11.500.
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