Street Calls of the Week
LONDON - Everest Global plc (LSE:EVST) announced Friday it plans to undertake a subdivision and consolidation of its share capital to address structural issues with its current share arrangement, according to a press release statement.
The company will convene a General Meeting on November 7, 2025, seeking shareholder approval for the capital reorganization and adoption of new articles of association.
The proposed restructuring aims to reduce the company’s large number of issued shares while increasing their nominal value. Currently, Everest has 77,388,855 ordinary shares with a nominal value of £0.02 each.
Under the proposed plan, each existing share would first be subdivided into one new ordinary share of £0.000005 and 3,999 deferred shares of £0.000005. These would then be consolidated so that every 200 new ordinary shares and deferred shares would become one new ordinary share and one deferred share of £0.001 each.
The board cited several reasons for the reorganization, including creating a more appropriate number of shares relative to the company’s size and market capitalization, establishing a more attractive share price level for investors, reducing share price volatility, and ensuring the nominal value falls below the current market price to enable future share issuances in compliance with the Companies Act 2006.
Everest noted that the reorganization will not affect the company’s underlying market capitalization or shareholders’ proportionate interests, except for minor impacts from fractional entitlements.
Shareholders holding fewer than 200 existing shares at the record date of November 7 will cease to be shareholders of ordinary shares in the company.
Application will be made for the new ordinary shares to begin trading on the Main Market of the London Stock Exchange on November 10, 2025, replacing the existing shares.
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