Solowin Holdings Ltd. (NASDAQ:AXG) shares tumbled Tuesday after the Hong Kong-based fintech company announced a 1-for-200 reverse share split.
The stock traded near 4 cents in midday trading, according to Benzinga Pro data, with volume approaching 300 million shares at the time of publication.
- AXG stock is plunging. See the real-time price action here.
Reverse Split Details
The reverse split covers both Class A and Class B ordinary shares, and class A shares will begin trading on a split-adjusted basis when Nasdaq opens Thursday morning.
Class A shares outstanding will fall from 201,529,461 to about 1,007,648. Class B shares will drop from 31,371,599 to roughly 156,858. No fractional shares will be issued, and any fractional interests will be rounded up to the next whole share.
Based on Tuesday’s AXG share price, a 200-fold adjustment would put the stock near $7.90. Solowin cautioned it cannot guarantee the post-split price will reflect the full ratio, hold for any length of time or stay above the pre-split level.
The board approved and shareholders signed off earlier in October with the goal of lifting share prices above Nasdaq’s $1 minimum bid requirement.
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A Steep Slide
The split caps a punishing stretch for the stock. Shares closed at $2.75 on Aug. 6, which puts the decline since then at more than 98%. Solowin Holdings started out as a Hong Kong securities brokerage, and the selloff came as the company pivoted toward some new and very trendy lines of business.
In late August, Solowin rolled out an AI infrastructure business through its AXG Digital division. Days later, its AlloyX Hong Kong unit signed a nonbinding agreement with Bank of Bahrain and Kuwait to explore regulated stablecoin infrastructure, quantum computing and high-performance computing. Terms were not disclosed.
In September, Solowin reported fiscal 2026 sales of $28.05 million, up about 895% from a year earlier.
The company’s next earnings report, covering the first half of fiscal 2027, is scheduled for Jan. 8, according to Benzinga’s earnings calendar.
AXG Stock Price Activity: Solowin stock was down 27.51% at $0.04 at the time of publication Tuesday, according to Benzinga Pro market data.
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