FOUNDER GROUP LIMITED DECLARES 100-TO-1 SHARE CONSOLIDATION
Company Announcement: Founder Group Limited has announced a significant financial move involving a share combination.
Share Value Impact: The company is implementing a 100-for-1 share combination, which may affect the market perception and trading of its shares.
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- Share Combination Plan: Founder Group announced a 100-for-1 share combination effective February 10, 2026, aimed at regaining compliance with Nasdaq Marketplace Rule 5550(a)(2) to maintain its listing status.
- Adjustment Details: Post-combination, the number of Class A shares will decrease from 32,178,109 to approximately 321,781, while Class B shares will reduce from 9,324,733 to about 93,247, ensuring shareholders' holdings are rounded to the nearest whole number.
- Market Impact Analysis: This share combination is expected to align the company with Nasdaq regulations, potentially boosting investor confidence and improving the company's image in the capital markets, thereby enhancing future financing capabilities.
- Company Background: Founder Group is focused on providing end-to-end EPCC solutions for solar PV facilities in Malaysia, emphasizing large-scale solar projects and commercial and industrial solar initiatives, promoting eco-friendly resources and achieving carbon neutrality.
- Reverse Split Announcement: Founder Group will implement a 1-for-100 reverse split on February 10, consolidating approximately 32.2 million Class A and 9.3 million Class B shares into 321,781 Class A and 93,247 Class B shares, aimed at boosting share price to meet Nasdaq's minimum bid requirements.
- Nasdaq Compliance Pressure: The company received a notice from Nasdaq last November for failing to maintain the $1 minimum bid price for 30 consecutive business days, and the reverse split is a strategy to regain compliance within the 180-day grace period to avoid delisting.
- Deteriorating Financials: According to the latest financial update, Founder Group's revenue for the half-year ended June 2025 increased by 82%, yet its net loss widened by nearly one-third, indicating a struggle between growth and profitability.
- Renewable Energy Partnership: The company signed an agreement with Planet QEOS to jointly develop a large-scale renewable energy facility in Sarawak, Malaysia, valued at approximately $276 million, highlighting its strategic focus on renewable energy initiatives.
- Market Performance: U.S. stocks traded higher midway through trading, with the S&P 500 gaining approximately 1.6%, the Dow rising 2.01% to 49,891.59, and the NASDAQ climbing 1.84% to 22,954.50, indicating a positive market sentiment and increased investor confidence.
- Sector Dynamics: Information technology shares gained 2.5% on Friday, while communication services stocks fell by 2%, reflecting a preference for tech stocks and concerns over the communication sector, which may impact future performance of related companies.
- AutoNation Earnings: Shares of AutoNation, Inc. (NYSE:AN) surged over 7% after posting fourth-quarter results, reporting adjusted earnings per share of $5.08, a 2% year-over-year increase that beat analyst expectations of $4.85, despite sales of $6.929 billion missing the consensus estimate of $7.200 billion, showcasing the company's resilience in profitability.
- Economic Indicators: The U.S. Manheim Used Vehicle Value Index rose 2.4% month-over-month in January, while the University of Michigan's consumer sentiment index increased by 0.9 points to 57.3, exceeding market estimates of 55, indicating a rebound in consumer confidence that could positively influence future spending.
- Strong Dow Performance: The Dow Jones index surged over 600 points on Friday, gaining 1.29% to close at 49,537.77, indicating a robust market rebound that may attract more investor interest.
- NASDAQ and S&P 500 Rise: The NASDAQ climbed 0.97% to 22,759.56, while the S&P 500 rose 1.02% to 6,867.68, reflecting a recovery trend in tech and other sectors, thereby boosting market confidence.
- Amazon's Earnings Impact Stock Price: Amazon.com Inc. (NASDAQ:AMZN) shares fell around 9% on Friday despite reporting fourth-quarter net sales of $213.39 billion, a 14% year-over-year increase; however, its earnings per share of $1.95 missed the consensus estimate of $1.97, leading to diminished investor confidence.
- Commodity Market Fluctuations: Oil prices dipped 0.3% to $63.08, while gold rose 1.6% to $4,969.10, indicating increased demand for safe-haven assets, and copper saw a slight increase of 0.4% to $5.8460, reflecting stable industrial demand.
Company Announcement: Founder Group Limited has announced a significant financial move involving a share combination.
Share Value Impact: The company is implementing a 100-for-1 share combination, which may affect the market perception and trading of its shares.

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