A Vietnamese construction company with its executive base in Huntington Beach is undertaking a 40-to-1 stock split as part of a bid to move from the low-profile Bulletin Board stock exchange to Nasdaq.
Cavico Corp., which is headquartered in Hanoi and run from Huntington Beach, said the split takes effect Wednesday and will cut the company’s shares from 130 million to about 3.3 million.
“We believe the reverse stock split will better position our company in our efforts to apply for a listing on the Nasdaq exchange,” Executive Vice President Hung Manh Tran said.
The company said it has applied for a listing on Nasdaq.
For now, Cavico’s shares trade on the sleepy Bulletin Board exchange with a market value of about $20 million.
Unlike Nasdaq or the other major exchanges, stocks of companies traded on the Bulletin Board don’t have to meet minimum share price, market capitalization, or shareholder equity requirements.
Cavico builds and invests in big projects in Vietnam, including hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings.
The company reported second-quarter sales of $13.8 million, down 29% from a year earlier. The company reported an operating profit of $1.2 million, down 33% from a year earlier.
Cavico went public here a few years ago by buying a publicly traded holding company.
