Alibaba Stock Split: What BABA Investors Should Know About the 1-for-8 Proposal
An Alibaba stock split proposal has been made by the company in an effort to increase its number of shares.
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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.
You can follow these links to learn more about the Alibaba stock split proposal.
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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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