Nominal Price Translation

Overview

A nominal price translation converts the nominal value of a share class into a new currency. This is commonly used when a company is redomiciled to a jurisdiction with a different currency, when the official currency changes (e.g., Cyprus adopting the euro in 2008, converting 1 CYP to 1.71 EUR), or when aligning share classes with corporate reporting currency.

What you'll learn:

• How to translate nominal prices to a new currency in the platform
• When to use nominal price translation
• The effects of currency translation on share classes
• How the platform updates authorised capital after translation

When to Use Nominal Price Translation

Use nominal price translation when:

• Redomiciling to a jurisdiction with a different currency
• National currency changes (e.g., legacy currency to euro)
• Aligning share classes with corporate reporting currency
• Consolidating currencies across multiple share classes

Performing a Nominal Price Translation

Step 1: Navigate to Share Classes

1. Open Certificates from the sidebar
2. Select the Share Class you want to convert

Step 2: Open Capital Actions

1. Scroll to the Capital Actions section
2. Click Add Capital Action

Step 3: Select Action Type

In the Action Type dropdown, choose Nominal Price Translation.

Step 4: Enter Translation Details

Enter the following information:

• Currency: Choose the new currency for the share class
• Nominal Price: Enter the translated nominal value (e.g., 1 CYP → 1.71 EUR)
• Authorized Shares: Confirm the existing authorised share count
• Authorized Capital: This field will update automatically based on the new nominal value and authorised shares
• Effective Date: Choose the date the translation takes effect

Step 5: Review and Confirm

1. Review the currency and translated nominal price carefully
2. Verify that the authorised shares count is correct
3. Check that the calculated authorised capital is accurate
4. Confirm the effective date
5. Click Create to apply the translation and update the share class records

The nominal price translation has been recorded. The share class now reflects the new currency and translated nominal value, and all related records have been updated.

Understanding Nominal Price Translation

A nominal price translation converts the nominal value of shares from one currency to another while maintaining the economic equivalence. This process updates the share class currency and recalculates the authorised capital based on the new currency and exchange rate.

Key Effects of Nominal Price Translation

• Currency Changes – The share class currency is updated to the new currency
• Nominal Price Translated – The nominal value per share is converted using the specified exchange rate
• Authorised Capital Recalculated – The authorised capital is automatically recalculated based on the new nominal price and authorised shares
• Number of Shares Unchanged – The quantity of authorised and issued shares remains the same
• Economic Value Maintained – The translation preserves the economic value of the shares

Nominal Price Translation vs. Change Nominal Price

These are two different actions:

• Nominal Price Translation: Changes the currency and translates the nominal value (e.g., CYP to EUR)
• Change Nominal Price: Changes the nominal value within the same currency (e.g., €1.00 to €0.50)

Practical Example

What Happens Next

After completing a nominal price translation:

• The share class currency is updated to the new currency
• The nominal price per share reflects the translated value
• The authorised capital is recalculated in the new currency
• All share certificates are updated to reflect the new currency and nominal value
• The capital history records the translation transaction
• Company records, registers, and filings are updated to reflect the new currency

Related Topics

• Capital Actions Overview – Learn about other capital actions you can perform
• Change Nominal Price – Learn how to change the nominal value within the same currency
• Setting up Share Classes – Understand how share classes work
• Cap Table – View how currency translations affect share capital visualization