Davis Commodities Announces Effective Date of Trading on a 20-for-1 Reverse Share Split Basis

Singapore – March 3, 2026 – Davis Commodities Limited has officially confirmed the effective date for the trading of its ordinary shares on a 20-for-1 reverse share split basis. The strategic corporate action marks a significant milestone in the company’s efforts to enhance shareholder value, improve market perception, and align its capital structure with long-term growth objectives.

The reverse share split will take effect on the announced date, after which the company’s shares will begin trading on a consolidated basis. This move is designed to increase the per-share trading price proportionally while reducing the total number of outstanding shares.

Understanding the 20-for-1 Reverse Share Split

A reverse share split consolidates existing shares into a smaller number of proportionally more valuable shares. Under the approved 20-for-1 reverse share split, every twenty (20) issued and outstanding ordinary shares of Davis Commodities will automatically be combined into one (1) ordinary share.

What This Means for Shareholders

Shareholders will not experience any change in the total value of their holdings immediately as a direct result of the reverse split. While the number of shares owned will decrease by a factor of twenty, the price per share is expected to increase proportionally.

For example, a shareholder who previously held 20,000 shares at a market price of $0.10 per share would hold 1,000 shares after the reverse split, with an anticipated adjusted market price of approximately $2.00 per share, subject to market conditions.

No Action Required from Shareholders

The reverse share split will be implemented automatically. Registered shareholders will not need to take any action. Share certificates, if applicable, will be adjusted accordingly, and shareholders holding shares electronically will see the updated number reflected in their brokerage accounts.

Strategic Rationale Behind the Reverse Share Split

The decision to implement a 20-for-1 reverse share split reflects Davis Commodities’ commitment to strengthening its capital structure and maintaining compliance with market standards.

Enhancing Market Perception

Companies trading at very low share prices may face challenges related to market perception and institutional investor participation. By consolidating its shares, Davis Commodities aims to position itself more favorably in the capital markets.

A higher trading price per share may help improve investor confidence and reduce price volatility that is often associated with lower-priced stocks.

Meeting Exchange Requirements

Reverse share splits are commonly utilized to maintain compliance with stock exchange listing requirements, particularly minimum bid price rules. While the company continues to focus on operational growth, this measure supports its commitment to upholding listing standards.

Impact on Authorized and Outstanding Shares

Following the reverse share split, the total number of issued and outstanding shares will decrease proportionally. The par value per share will be adjusted if required, in accordance with applicable corporate and regulatory guidelines.

Importantly, fractional shares resulting from the reverse split will be addressed according to the company’s stated policy, ensuring fair treatment of shareholders.

Fractional Shares Handling

Any fractional shares created as a result of the reverse share split may be rounded up or otherwise handled in compliance with corporate governance rules and regulatory requirements. Shareholders are encouraged to review official communications for precise details.

Company Overview: Davis Commodities Limited

Davis Commodities Limited is an established agricultural commodities trading company headquartered in Singapore. The company specializes in the sourcing, processing, and distribution of essential commodities, including rice, sugar, and oil and fat products, serving customers across Asia, Africa, and other global markets.

Core Business Segments

• Rice Trading: Procurement and global distribution of premium and standard rice varieties.
• Sugar Trading: Supply chain management and delivery of refined and raw sugar products.
• Edible Oils and Fats: Distribution of palm oil and other essential edible oil products.

Through strategic supplier partnerships and a global distribution network, Davis Commodities has built a resilient and diversified operating platform.

Commitment to Long-Term Growth

The reverse share split aligns with the company’s broader growth strategy. Davis Commodities continues to focus on operational excellence, supply chain optimization, and expansion into high-growth markets.

Strengthening Financial Flexibility

By restructuring its share capital, the company enhances financial flexibility and positions itself to pursue potential investment opportunities, strategic partnerships, and expansion initiatives.

This capital optimization initiative demonstrates proactive corporate governance and responsible financial management.

Market Reaction and Investor Outlook

While reverse share splits do not alter the fundamental value of a company, they can influence investor sentiment and market dynamics. Analysts often view such moves as part of broader restructuring or compliance strategies.

Investors are encouraged to evaluate Davis Commodities’ underlying business performance, revenue growth trajectory, and strategic initiatives when assessing the long-term implications of this corporate action.

Maintaining Transparency

The company has reiterated its commitment to maintaining transparency with shareholders. Official filings and announcements will provide detailed information regarding implementation procedures and key dates.

Forward-Looking Statements

This announcement may contain forward-looking statements regarding future financial performance, market conditions, and corporate strategies. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially.

Davis Commodities advises investors to review all regulatory filings and disclosures carefully before making investment decisions.

Conclusion

The confirmation of the effective trading date for the 20-for-1 reverse share split represents a strategic milestone for Davis Commodities Limited. By consolidating its share structure, the company aims to strengthen market positioning, enhance investor perception, and ensure compliance with exchange requirements.

As Davis Commodities continues to execute its growth strategy, this corporate action underscores its commitment to disciplined capital management and long-term value creation for shareholders.

Shareholders and prospective investors are encouraged to monitor official communications for updates and to consult financial advisors for personalized guidance regarding the implications of the reverse share split.

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