Myanmar Thilawa SEZ Holdings shareholders approved a share split at the company’s recent extraordinary general meeting, MTSH said yesterday.
The board of directors proposed to split each of the firm’s 3.89 million shares into 10 on September 28, increasing the number of MTSH shares to 38.9 million.
The par value – the value at which the shares can be redeemed – will drop from K10,000 to K1000. As a result, the company’s shareholders will hold 10 times as many shares as they did before, but the value of their shares will not change.
The directors said the split was proposed in order to make the shares more affordable and boost trading.
The firm’s shareholders accepted the proposal, which was approved at an EGM on October 23, according to an MTSH announcement on the Yangon Stock Exchange (YSX) yesterday.
MTSH shares closed up K1000 on the day at K48,000.
Companies often use share splits when their share price is relatively high in order to make investment more affordable – particularly for ordinary retail investors.
MTSH shares are more than twice the price of the other two stocks on the YSX. First Myanmar Investment shares closed at K16,500 yesterday, and Myanmar Citizens Bank finished at K9400.
The registrar of MTSH shareholders will be closed from October 31 to November 3 and trading suspended while the share split takes place. Trading will resume after the split on November 4, according to the announcement.