SU Group Holdings Limited Announces Reverse Stock Split, Share Capital Increase and Share Capital Alteration
SU Group Holdings (NASDAQ:SUGP) announced three major capital structure changes effective August 25, 2025: a 1-for-10 reverse stock split, a share capital increase, and a share capital alteration. The reverse split will reduce outstanding shares from 13.8M to 1.38M, aiming to meet Nasdaq's $1 minimum bid requirement.
The company will increase its authorized share capital from HK$7.5M to HK$75M and implement a dual-class share structure. The restructuring creates Class A (1 vote) and Class B (50 votes) shares, with Class B shares allocated to Chairman Chan Ming Dave, increasing his voting control from 65.84% to 98.96%.
SU Group Holdings (NASDAQ:SUGP) ha annunciato tre rilevanti modifiche alla struttura del capitale, efficaci dal 25 agosto 2025: un reverse stock split 1-per-10, un aumento del capitale sociale e una modifica della struttura delle azioni. Il frazionamento inverso ridurrà le azioni in circolazione da 13,8 milioni a 1,38 milioni, con l’obiettivo di soddisfare il requisito di offerta minima di $1 imposto dal Nasdaq.
La società aumenterà il capitale sociale autorizzato da HK$7,5 milioni a HK$75 milioni e introdurrà una struttura azionaria a due classi. La riorganizzazione creerà azioni di Classe A (1 voto) e Classe B (50 voti), con le azioni di Classe B assegnate al presidente Chan Ming Dave, portando il suo controllo di voto dal 65,84% al 98,96%.
SU Group Holdings (NASDAQ:SUGP) anunció tres cambios importantes en su estructura de capital, vigentes a partir del 25 de agosto de 2025: una consolidación de acciones 1 por 10, un aumento del capital social y una alteración en la composición de las acciones. La consolidación reducirá las acciones en circulación de 13,8 M a 1,38 M, con el objetivo de cumplir el requisito del Nasdaq de cotizar por un mínimo de $1.
La compañía aumentará su capital social autorizado de HK$7,5 M a HK$75 M e implementará una estructura de acciones de doble clase. La reestructuración creará acciones Clase A (1 voto) y Clase B (50 votos), asignando las Clase B al presidente Chan Ming Dave, lo que elevará su control de voto del 65,84% al 98,96%.
SU Group Holdings (NASDAQ:SUGP)는 2025년 8월 25일부로 효력이 발생하는 세 가지 주요 자본구조 변경을 발표했습니다. 1대10 역병합, 액면 증자 및 주식 구조 변경이 그 내용입니다. 역병합으로 발행 주식 수는 1,380만 주에서 138만 주로 줄어들며, 이는 나스닥의 최소 입찰가 $1 요건을 충족하기 위한 조치입니다.
회사는 승인된 자본금을 HK$750만에서 HK$7,500만으로 증액하고 이중 클래스 주식 구조를 도입합니다. 재구성으로 보통주(Class A, 1주당 1표)와 우선투표주(Class B, 1주당 50표)가 신설되며, Class B 주식은 회장인 Chan Ming Dave에게 배정되어 그의 의결권 비중이 65.84%에서 98.96%로 증가합니다.
SU Group Holdings (NASDAQ:SUGP) a annoncé trois modifications majeures de sa structure de capital, effectives au 25 août 2025 : un regroupement d’actions 1 pour 10 (reverse split), une augmentation du capital social et une modification de la répartition des actions. Le regroupement réduira les actions en circulation de 13,8 M à 1,38 M, afin de satisfaire l’exigence du Nasdaq d’un cours minimum de 1 $.
La société portera son capital social autorisé de HK$7,5 M à HK$75 M et instaurera une structure à deux catégories d’actions. La restructuration créera des actions de Classe A (1 droit de vote) et de Classe B (50 droits de vote), les actions de Classe B étant attribuées au président Chan Ming Dave, portant son contrôle de vote de 65,84% à 98,96%.
SU Group Holdings (NASDAQ:SUGP) gab drei bedeutende Änderungen der Kapitalstruktur bekannt, die am 25. August 2025 wirksam werden: einen 1-zu-10 Reverse-Split, eine Erhöhung des Grundkapitals und eine Änderung der Aktienstruktur. Der Reverse-Split reduziert die ausstehenden Aktien von 13,8 Mio. auf 1,38 Mio., um die Nasdaq-Anforderung eines Mindestgebots von $1 zu erfüllen.
Das Unternehmen wird das genehmigte Kapital von HK$7,5 Mio. auf HK$75 Mio. erhöhen und eine Zwei-Klassen-Aktienstruktur einführen. Die Umstrukturierung schafft Klasse-A-Aktien (1 Stimmrecht) und Klasse-B-Aktien (50 Stimmrechte); Klasse-B-Aktien werden dem Vorsitzenden Chan Ming Dave zugewiesen, wodurch seine Stimmrechtskontrolle von 65,84% auf 98,96% steigt.
- None.
- Significant concentration of voting power (98.96%) with Chairman Chan Ming Dave
- No guarantee of meeting Nasdaq minimum bid requirement despite reverse split
- Potential reduced stock liquidity due to fewer outstanding shares
Insights
SU Group's reverse split aims to maintain Nasdaq listing while significantly consolidating voting power with the chairman.
SU Group is implementing three critical corporate actions that will substantially alter its capital structure and governance. The 1-for-10 reverse stock split is primarily designed to boost the share price above Nasdaq's
More concerning is the share capital alteration creating a dual-class structure that dramatically shifts voting power. After implementation, Chairman Chan Ming Dave will control
This dual-class restructuring effectively eliminates meaningful shareholder influence on corporate decisions. The timing alongside a reverse split suggests management may be anticipating shareholder resistance to future actions and is preemptively consolidating control. While dual-class structures exist at many companies, the
Reverse Stock-Split, Share Capital Increase and Share Capital Alteration to be effective on August 25, 2025
Share Consolidation
The Share Consolidation, approved as an ordinary resolution, will combine every ten Ordinary Shares into one Ordinary Share with a par value of
The Share Consolidation is primarily intended to bring the Company into compliance with the
The Share Consolidation will reduce the number of issued and outstanding ordinary shares of the Company from approximately 13,847,500 to approximately 1,384,750. No fractional shares will be issued. Each shareholder will be entitled to receive one consolidated share in lieu of any fractional share, resulting in all fractional shares being rounded up to the nearest whole number.
The 1-for-10 Share Consolidation (the "Ratio") will automatically combine and convert 10 current Ordinary Shares into 1 issued and outstanding new Ordinary Share. The Company's transfer agent, Transhare Corporation, will serve as exchange for the Share Consolidation. Registered shareholders holding pre-split Ordinary Shares electronically in book-entry form are not required to take any action to receive post-split shares. Shareholders owning shares via a broker, bank, trust or other nominee will have their positions automatically adjusted to reflect the Share Consolidation, subject to such broker's particular processes, and will not be required to take any action in connection with the Share Consolidation. Holders of stock certificates will need to send their old physical certificates with a letter of transmittal to receive their new post-Share Consolidation certificate.
Share Capital Increase
Subject to the Share Consolidation taking effect, the Share Capital Increase, approved as an ordinary resolution, will increase the authorized share capital from
Share Capital Alteration
Subject to the Share Consolidation and Share Capital Increase taking effect, the Share Capital Alteration, approved as a special resolution, will amend the share capital of the Company by:
- Authorized Share Capital Change: Re-designating the authorized share capital from
HK , comprising 750,000,000 Consolidated Shares, into 749,098,320 Class A ordinary shares, par value$75,000,000 HK each ("Class A Ordinary Shares"), and 901,680 Class B ordinary shares, par value$0.10 HK each ("Class B Ordinary Shares"), with rights, privileges, and restrictions as set out in the amended memorandum and articles of association (the "M&A Amendments") of the Company.$0.10 - Issued Share Capital Change: Re-designating the issued and outstanding Consolidated Shares as follows:
(a) 842,280 Consolidated Shares held by Exceptional Engineering Limited will be re-designated as 842,280 Class B Ordinary Shares.
(b) 59,400 Consolidated Shares held by DC & Partners Incorporation Limited will be re-designated as 59,400 Class B Ordinary Shares.
(c) All other Consolidated Shares will be re-designated as Class A Ordinary Shares on a one-for-one basis.
- M&A Amendments: Amending the memorandum and articles of association of the Company to reflect the new share structure, including the rights and privileges of Class A and Class B Ordinary Shares. Each Class A Ordinary Share will carry one (1) vote, and each Class B Ordinary Share will carry fifty (50) votes on a poll at any general meeting of the Company. Class B Ordinary Shares may be converted into Class A Ordinary Shares on a one-for-one basis voluntarily at the option of the holder or automatically upon transfer to any person or entity, subject to certain conditions.
The Share Capital Alteration will significantly increase the voting power of Mr. Chan Ming Dave, the Company's chairman and executive officer, from approximately
Additional Information
Each outstanding stock option, warrant, restricted share unit, or other security convertible into pre-Share Consolidation Ordinary Shares that has not been exercised or cancelled prior to the effective date will be adjusted pursuant to the terms of the instrument or plan governing such security based on the 1-for-10 ratio. The Share Consolidation will change the par value of the Ordinary Shares from
About SU Group Holdings Limited
SU Group (Nasdaq: SUGP) is an integrated security-related services company that primarily provides security-related engineering services, security guarding and screening services, and related vocational training services in Hong Kong. Through its subsidiaries, SU Group has been providing turnkey services to the existing infrastructure or planned development of its customers through the design, supply, installation, and maintenance of security systems for over two decades. The security systems that SU Group provides services include threat detection systems, traffic and pedestrian control systems, and extra-low voltage systems in private and public sectors, including commercial properties, public facilities, and residential properties in Hong Kong. For more information visit www.sugroup.com.hk.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements," including with respect to the proposed initial public offering and the anticipated use of the net proceeds. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. All statements other than statements of historical facts are forward-looking statements. You can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to" or other similar expressions. The Company has based these forward-looking statements largely on its current expectations about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These risks and uncertainties include forward-looking statements include, but are not limited to, the risks and uncertainties described in "Special Note Regarding Forward-Looking Statements," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the documents that referred to in the prospectus filed with the SEC with the understanding that the Company's future results may be materially different from and worse than what we expect. Copies are available on the SEC's website, www.sec.gov. Other sections of the prospectus include additional factors which could adversely impact the Company's business and financial performance. Moreover, the Company operates in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for the Company's management to predict all risk factors and uncertainties, nor can the Company assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company and the underwriters qualify all of the forward-looking statements by these cautionary statements.
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SOURCE SU Group Holdings Limited
FAQ
What is the ratio of SUGP's reverse stock split and when is it effective?
How will SUGP's new dual-class share structure work?
What happens to SUGP shareholders' fractional shares after the reverse split?
How will the reverse stock split affect SUGP's trading on Nasdaq?
What is the impact on Chairman Chan Ming Dave's voting control in SUGP?
