Share Consolidation Explained – Air Asia Case Study

Info on Share Consolidation of Air Asia X Berhad, AAX

Air Asia Berhad (AAX) shares underwent an Ex-Date Share Consolidation on 10 February 2022.

Users of the Mplus platform would have seen a Popup Alert about the AAX Share Consolidation a week before the Ex-Date as an early reminder to traders and investors.

What to Do If This Share Is in Your Portfolio?

On 10 February 2022, if the AAX share was in your portfolio, you needed to understand what Share Consolidation means and its effects.

Then, you needed to know how to calculate Share Consolidation based on the ratio announced by the company.

What Is Share Consolidation?

Share Consolidation is the merging of shares aimed at increasing the value of the stock. It is a type of corporate exercise that combines multiple share units into a single unit.

Ex-Date Share Consolidation AAX

The Ex-Date is the cut-off date for eligible shareholders.

How to Calculate AAX Share Units on Ex-Date Consolidation

Based on the AAX case study ratio of 1:10, this means every 10 units are merged into 1 unit.

Effects of AAX Share Consolidation

The total number of share units decreases and the share price increases in line with the merging of share units.

What Happens If You Oversell?

Excess share units sold are considered Short Selling. As a penalty, the excess units sold must be bought back.

Companies That Will Carry Out Corporate Exercises

Check your platform for popup Alert Messages or visit Bursa Malaysia website.

FAQ

Common questions about Share Consolidation answered.

Conclusion

The essential thing you need to know about Share Consolidation is how to calculate share units based on the ratio to avoid penalties.