Resins maker Nuplex plans cut the 759 million shares it has on issue by consolidating every four of its shares into one.
In April, the company raised nearly $160 million to pay down bank debt.
The move, which will take effect from 17 June, will see the number of shares shrink to 190 million.
Last month, Nuplex repeated that it expects to make full year operating earnings of $87 million.
It said it was seeing early signs of recovery in some markets and growing stability in the others, as customers looked to replenish stocks.
Nuplex's share price fell 7% on Tuesday morning, or 3 cents, to 43c.