Bourse (vecteezy photography)
After the stock exchange decided to allow trading in securities in financial volumes below the minimum that was customary until now, the non-bank credit company, Michman, decided to lift the glove and split its shares so that transactions could be made in small amounts. In principle, Michman’s share will be split at a ratio of 9: 1, which means that one share will be split into 9 shares.
Michman’s share is traded on the stock exchange today (before the split) at a price of NIS 2,134.9, which makes it very difficult for small investors who can invest in the share only if they have more than NIS 5,000. The split of the shares will bring their price to the order of 237 shekels, which will greatly facilitate trading in it.
More in-
The split will be carried out by dividing benefit shares to shareholders in a way that reduces the price of one share of the company by 10 times. ).
The allotment will increase the number of existing shares of Michman 10 times and the share price will decrease 10 times. It should be noted that the company’s equity will not increase following the allotment.
Doron Sapir, Chairman of the Company and Yaniv Bitton, CEO of Michman Credit for Business: “Following the stock exchange announcement last week that the minimum amount of a trading order has been reduced to NIS 500 in all shares traded in Tel Aviv, we announced the allotment of benefit shares Of the company to make the share price accessible for investment by the general public so that the new price will be low enough and will allow even small investors to purchase shares. We believe that through this move, the volume of trading in the stock will increase. ”
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