The value of Transneft preferred shares increased by 2.15% to RUB 147,200. Quotes reacted to the news that the state supported the split of the company’s shares.
As of 14:55 Moscow time, it amounted to rubles. 146,650 (+1.7%). The Moscow Exchange index was at 3243.67 points (+0.27%). Since the beginning of the year, it has grown by 50%, the company’s quotes by 68%.
The fact that the decision to split Transneft shares was supported by the state was stated by the head of the Russian Direct Investment Fund (RDIF), a member of the board of directors of Transneft, Kirill Dmitriev.
He called the stock split a very important step that will allow more Russian citizens to invest in “Transneft“
Previously, the Board of Directors of Transneft recommended shareholders decide to split the company’s shares in a ratio of 100:1. The number of ordinary shares subject to splitting will be 5.69 million. The par value of one ordinary share before splitting is 1 ruble, and after splitting – 0.01 ruble. Moreover, their number after crushing will be 569.44 million.
Digit Broker analyst Daniil Bolotskikh expressed the opinion that a stock split will have a positive effect on the dynamics of the stock price and will help reveal the internal value of the company. According to him, the growth of quotations is restrained by the high share price, which serves as a barrier to purchases by private investors, who currently account for 80% of transactions on the stock market. In this situation, splitting shares can put the security on the list of the most popular shares among investors, the expert noted.