Chow brothers consolidate shares after 'hiccup' with NZX system
Millionaire property magnates the Chow brothers have hit a speed bump with their backdoor listing.
On Tuesday, the NZX suspended the trading of RIS Group shares after discovering the system was unable to cope with the 19 billion shares in circulation.
RIS Group chairman John Chow said while they had received an apology from NZX, they were disappointed by the suspension.
"We understand why this has been put in place, [but] we have had very strong interest in the shares and the suspension has disrupted the market.
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"We will work through the matter with NZX so investors can gain accurate information and decide if they wish to invest."
As a result of the suspension, directors held an urgent meeting to consider the NZX recommendation to consolidate shares, Chow said.
The board decided to consolidate 25 shares to one, which will be effective on March 7.
Prior to that date, the trading halt would have lifted, he said.
"[This] will bring the number of shares on issue to approximately 800 million and it is well with the NZX system capacity."
Following the reverse takeover of RIS, the Chow brothers owned 90 per cent of the company's shares, dramatically increasing the number in circulation.
Just days before, the Chow brothers held a special meeting to discuss a name change.
As of March 7, RIS Group will be renamed Chow Group.
"We are very pleased that the shareholders supported our proposal at the special meeting," Chow said.
"We are in the planning stage for the company and the suspension has caused a small hiccup, however we are very positive about the future for the company.
"Michael and I are working on a strategy to build the company into a significant listed entity in New Zealand."