Republic Power Group Limited (NASDAQ:RPGL) saw its shares decline 18.7% on Thursday following the company's disclosure that its board had authorized a 1-for-20 reverse share split. The action is intended to help the company meet Nasdaq's $1.00 minimum bid price condition for continued listing.
The reverse split is scheduled to become effective on February 23, 2026. Once implemented, Republic Power's outstanding Class A Ordinary Shares will fall from 62,025,000 to roughly 3.1 million shares. The company said the repackaged shares will continue to trade under the same ticker symbol, though trading units will be assigned a new CUSIP number - G7523E113 - and the per-share par value will be adjusted to $0.0125.
Company disclosures note that the split should, in simple proportional terms, raise the trading price of the common stock by about a factor of 20. However, Republic Power cautioned that it cannot promise the post-split market price will precisely reflect that multiple, nor that the adjusted price will remain above the company's pre-split trading levels.
Procedural details accompany the corporate action. No fractional shares will be issued; fractional interests that would otherwise result from the split will be rounded up to the nearest whole share. Shareholders holding their stock in book-entry form or through brokerage accounts were told they do not need to take any action in response to the reverse split.
For holders who possess physical share certificates, Transhare Corporation has been named as the exchange agent and will provide instructions on how to exchange certificates following the split.
This development prompted an immediate market reaction, as evidenced by the near 19% intraday decline in the takeup of the company's stock. The company's board approved the measure on February 2, 2026 with the stated objective of regaining compliance with Nasdaq's minimum bid price standard.
Investors and stakeholders should expect administrative steps for certificated holders, while those in brokerage or book-entry form should see the change processed by custodians without required action.