In this article, we’ll discuss the upcoming stock splits in the UK market for the week of January 27 to January 31, according to TipRanks’ Stock Splits Calendar.
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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.
Here’s an overview of the upcoming stock split in the UK market this week.
Eight Capital Partners PLC (GB:ECP) – Eight Capital Partners (ECP) is an international financial services company specializing in fintech and the digitisation of banking. The company delivers innovative financial solutions through its subsidiaries, Innovative Finance and Epsion Capital, based in Europe and the UK.
On January 23, ECP announced a capital reorganisation through one-for-4000 reverse stock split of its common stock. The capital reorganisation will reduce the total number of shares from 187.45 billion to 46.86 million by consolidating them. Each new share will have a value of £0.40 (40p). Meanwhile, this consolidation will increase the share price by 4,000 times. To be specific, with a closing share price of £0.00028 on January 21, 2025, the new indicative share price would be £1.12.
Notably, the company’s shareholders owning fewer than 4,000 existing ordinary shares will not receive any consolidated shares. Meanwhile, for those holding more than 4,000 shares but not in multiples of 4,000, their consolidated shares will be rounded down to the nearest whole number.
The record date for the consolidation of existing ordinary shares is set for 29 January 2025. Thereafter, the admission of the new ordinary shares and bond shares will occur on 30 January 2025.
To find more information about historical and upcoming stock splits, visit the TipRanks Stock Splits Calendar.