Shopify Inc. today announced a 10-for-1 split of its Class A and Class B shares, subject to shareholder approval.
The company now joins a growing list of companies that have split up their shares to make them more attractive to investors.
at his upcoming annual and special meeting of shareholders On June 7, the e-commerce giant announced that it plans to seek shareholder approval for a 10-for-1 stock split of its common stock. in one Explanationit noted that the proposed division will make the property more accessible to investors.
Other major companies announcing split proposals include Alphabet Inc., Amazon.com Inc. and Tesla Inc.
Shopify also announced that it will give CEO Tobi Lutke a special “founder share” that will retain his voting rights for as long as he’s with the company. The proposal aims to preserve Lutke’s voting rights. The founder’s share will give him a variable number of votes, and that, along with his previously held shares from other classes, would account for 40 percent of the total voting rights associated with all of Shopify’s outstanding shares.
Currently, the Company’s Class A shares carry one vote per share and Class B shares carry 10 votes per share.
Today, US-listed Shopify shares fell slightly to $602.61 in morning trade, while rising slightly to $765 on the Toronto Stock Exchange. They have lost more than half of their value this year.
A stock split could potentially boost retail stock ownership as the cheaper share price is more accessible to a wider range of investors.