Why Did Globavend Holdings Plunge 19.15%?

On July 18, 2025, Globavend Holdings experienced a significant drop of 19.15% in pre-market trading, marking a notable decline in its stock performance.

Globavend Holdings has announced a 1-for-200 reverse stock split, which is set to take effect on July 21, 2025. This move will significantly reduce the number of outstanding shares, from approximately 253 million to around 1.27 million. The reverse stock split aims to consolidate every 200 shares into one, thereby increasing the par value of each share from $0.001 to $0.20. This decision was approved by the company's board of directors and a majority of shareholders during an extraordinary general meeting held on April 28, 2025.

The reverse stock split is expected to have a profound impact on the company's stock dynamics. The reduction in the number of outstanding shares could potentially lead to a higher stock price per share, although it does not alter the overall market capitalization. This strategic move is part of Globavend Holdings' efforts to enhance its financial profile and attractiveness to investors. The company's shares will begin trading on a post-split basis on July 21, 2025, under the same symbol "GVH" on the Nasdaq Capital Market.