These are the upcoming stock splits for the week of February 3 to February 7 in the UK market, based on TipRanks’ Stock Splits Calendar.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
A stock split is a financial move when a company issues more shares to its existing shareholders, while reducing the price per share. Consequently, the total value of the investment remains the same for a shareholder. Similarly, the overall market capitalization of the company remains the same both before and after the split.
Stock splits are often done to make shares more affordable to small investors and increase liquidity.
On the other hand, in a reverse stock split, a company reduces the total number of outstanding shares by consolidating them. Despite this reduction, the company’s market capitalization remains unchanged because the share price increases proportionally to balance the consolidation. It is also known as stock consolidation and is often used to boost the stock price, which can help meet listing requirements or improve the stock’s perception in the market.
Let’s take a quick look at the upcoming stock splits in the UK market for this week.
Pennon Group PLC (GB:PNN) – Pennon Group is a British environmental utility infrastructure company that owns South West Water Limited. On January 29, the company announced a discounted rights issue, offering 13 new shares for every 20 existing shares. Through this underwritten rights issue, Pennon will raise £490 million, offering 185,928,002 new shares at 264p each. The admission of new ordinary shares and the commencement of dealings will take effect from February 3.
Distribuidora Internacional De Alimentacion SA (GB:0Q2F) – DIA is a Spanish supermarket chain that operates a network of owned and franchised self-service stores, specializing in the sale of food products. On January 31, DIA announced a one-for-1000 reverse stock split of its shares. The existing shares will be delisted on February 5, 2025, and the new shares will be simultaneously listed for trading on the Madrid, Barcelona, Bilbao, and Valencia stock exchanges.
The reverse stock split aims to enhance market perception by eliminating Dia’s ‘penny stock’ status and its associated risks. It also aligns with Dia’s strategy to drive profitable growth and attract institutional investors.
To find more information about historical and upcoming stock splits, visit the TipRanks Stock Splits Calendar.
