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Russia's Polyus board advises share split to increase liquidity

Russia's largest gold manufacturer Polyus stated on Tuesday its board had suggested investors approve a stock split to increase the liquidity and accessibility of the company's shares.

Given that Moscow sent out troops into Ukraine in February 2022, Russian stock markets have altered dramatically, with retail investors now controling trading and extremely few foreign financiers able or ready to participate. Oil pipeline monopoly Transneft and mining giant Nornickel have actually also performed share splits.

At Monday's close, Polyus was the most costly of all blue-chip stocks on the Moscow Exchange, with one share worth 13,929.5 roubles ($ 139.30).

Shareholders are being asked to authorize the split at a ratio of one to 10, Polyus stated. The meeting will be held on Feb. 3, 2025.

A share split increases the variety of shares held by shareholders by dividing existing shares.

Splitting the shares would make them more accessible to retail financiers and may help increase their liquidity, Polyus CEO Alexei Vostokov stated previously this month.

In November, retail investors accounted for 75.8% of all trading on the Moscow Exchange.

In 2015, Polyus finished a 579.4 billion rouble ($ 5.8. billion) share buyback that it stated could enhance its monetary. flexibility for future M&A deals.

(source: Reuters)