Share Split

Overview

A share split (also called a subdivision of shares) increases the number of issued shares by dividing existing shares into smaller units. The nominal value per share decreases proportionally, while the total share capital remains unchanged. This is often done to make shares more accessible to investors or to align the capital structure with market or internal requirements.

What you'll learn:

• How to perform a share split in the platform
• The effects of a share split on share capital and ownership
• How the platform updates your share structure after a split

Performing a Share Split

Step 1: Navigate to Capital Actions

1. Navigate to the Company you wish to modify
2. Open the Share Class where the split will be performed
3. Go to Capital Actions and select Add Capital Action
4. Choose Share Split from the available options

Step 2: Configure the Split

Enter the following information:

• Multiplier: Enter the ratio for the split
  • Example: A 10-for-1 split means each existing share will be divided into 10 shares (Multiplier = 10)
• Effective Date: Set the date on which the split will take effect

Step 3: Review and Confirm

1. Review the split configuration carefully
2. Verify the multiplier and effective date
3. Confirm that the new share quantities and nominal values are correct
4. Click Save to complete the share split

The share split has been recorded. The number of shares has increased, and the nominal value per share has decreased proportionally. Total share capital remains unchanged.

Understanding Share Split

A share split changes the nominal price per share based on a multiple. The total number of authorised and issued shares increases by the same multiple. The company's issued capital and authorised capital remain constant.

Key Effects of a Share Split

• Number of Shares Increases – Each existing share is split into multiple shares
• Nominal Value Decreases – The total share capital remains the same; only the face value per share changes
• No Impact on Shareholder Ownership Percentage – Shareholders hold more shares, but their proportionate ownership remains unchanged
• Authorised Shares Increase – The maximum number of shares that can be issued increases by the same multiple

Practical Example

What Happens Next

After completing a share split:

• The share class shows the new number of shares and reduced nominal value
• All existing shareholdings are automatically updated with the new quantities
• The cap table reflects the new share structure while maintaining ownership percentages
• Share certificates need to be updated to reflect the new number of shares per certificate
• The transaction appears in the capital actions history

Related Topics

• Capital Actions Overview – Learn about other capital actions you can perform
• Setting up Share Classes – Understand how share classes work
• Cap Table – View how share splits affect ownership visualization