Galaxy Payroll Group Announces 10-to-1 Share Consolidation to Optimize Capital Structure
Galaxy Payroll Group's share consolidation reduces outstanding shares from 21.6 million to approximately 2.2 million, positioning the company for future growth opportunities while maintaining shareholder proportional rights.
Galaxy Payroll Group Limited (Nasdaq: GLXG) has announced a consolidation of all issued and unissued ordinary shares at a ratio of ten shares to one share, approved unanimously by the company's Board of Directors. The share consolidation, effective September 8, 2025, represents a strategic move to optimize the company's capital structure as it positions for future growth opportunities in the competitive payroll services market.
The consolidation will apply to both Class A and Class B ordinary shares, with the par value per share increasing from US$0.000625 to US$0.00625 following the process. This action will significantly reduce the number of outstanding ordinary shares from 21,615,000 to approximately 2,161,500, streamlining the company's share structure while maintaining proportional rights and economic interests for all shareholders. No fractional shares will be issued, with the company instead issuing one full post-consolidation ordinary share to any shareholder who would have been entitled to receive a fractional share.
Mr. Wai Hong Lao, Chairman and Chief Executive Officer of Galaxy Payroll Group, stated that the share consolidation represents an important step in the company's strategic planning. The company's ordinary shares will continue trading on the Nasdaq Capital Market under the symbol "GLXY" but will trade under a new CUSIP number: G37692 111. The consolidation was approved pursuant to the British Virgin Islands Business Companies Act and the company's amended memorandum and articles of association, which will be updated to reflect these changes.
The move comes as Galaxy Payroll Group, a leading payroll outsourcing service provider based in Hong Kong, continues to expand its operations across Hong Kong, Taiwan, Macau, and mainland China. The company specializes in delivering HR and payroll solutions to multinational companies across various industries, focusing on innovation and client satisfaction. For more information about the company's services and operations, visit https://www.galaxyapac.com.
Share consolidations are typically undertaken by companies seeking to increase their share price to meet exchange listing requirements or to make their stock more attractive to institutional investors. This strategic financial maneuver often signals management's confidence in the company's future prospects and its commitment to creating long-term shareholder value through improved capital structure optimization.