SU Group Holdings Limited announced a 1-for-10 reverse stock split of its ordinary shares, effective August 25, 2025. This action, approved by the board and shareholders, is primarily intended to bring the company into compliance with Nasdaq's $1.00 minimum bid price requirement. The reverse split will reduce the number of issued and outstanding ordinary shares from approximately 13,847,500 to approximately 1,384,750.
In conjunction with the reverse stock split, the company also approved an increase in its authorized share capital and an alteration to its share capital structure. The share capital alteration will re-designate certain ordinary shares as Class B Ordinary Shares, significantly increasing the voting power of Chairman and CEO Mr. Chan Ming Dave. His total voting power is expected to increase from approximately 65.84% to 98.96% through his beneficial ownership of Class B Ordinary Shares.
While the reverse stock split aims to address Nasdaq listing compliance, there is no guarantee it will meet the minimum bid price requirement. The substantial increase in the Chairman's voting power represents a significant change in the company's governance structure. These corporate actions are critical for the company's continued listing and future strategic direction.
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