An Alibaba stock split proposal has been made by the company in an effort to increase its number of shares.
Here’s what investors in Alibaba (NYSE:BABA) need to know about the stock split proposal.
- The Alibaba stock split would have the company dividing one share into eight shares.
- This means that the company will be increasing its number of shares from 4 billion to 32 billion.
- The company says that it will be holding a vote on the Alibaba stock split proposal during its annual shareholders meeting.
- This meeting will be taking place on July 15, 2019.
- If shareholders approve of the stock split, the Alibaba says that it will occur no later than July 15, 2020.
- The company is advising shareholders in BABA stock to vote in favor of the plans to split the stock.
- Alibaba claims that the stock split will also create a lower point of entry for more investors.
- It says that this will give the company more flexible capital to work with in the future.
- The stock split may have to do with the company’s plans to hold an initial public offering in Hong Kong.
- Some reports claim that the company may be able to raise as much as $20 billion from an IPO in Hong Kong.
BABA stock was up 1% as of Monday afternoon.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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