Shopify, Inc. (SHOP) announced a stock split on November 1st, 2018. The company’s stock price increased by 2.5% after the announcement and closed at $128.04 per share on November 4th. Here are some things to know about the Shopify stock split:
The company will issue 1,000,000 shares of common stock for every 10,000 shares of redeemable convertible preferred stock outstanding as of the record date. As a result, the number of outstanding shares will increase from 174,724,000 to 813,724,000 post-split. The value of each share after the split will be $14.96.
There was no change to the voting rights or redemption rights of holders of redeemable convertible preferred stock as a result of the stock split.
If you are a shareholder of Shopify on or before October 31st, 2018 and would like to receive your share of the stock split proceeds in cash rather than in newly issued shares of common stock, you must contact Shopify at least 90 days prior to the record date in order to request that your shares be converted into cash. If you are not a shareholder but would like
What is a Shopify Stock Split?
When a company splits its stock, it means that holders of common stock (shareholders) will receive a new set of shares and the company will issue new shares. This can be done in order to increase the number of shareholders, lower the price of the stock, or to create a more diverse ownership structure.
Shopify Inc. (SHOP) is scheduled to split its common stock on November 1st. This announcement was made on September 12th and Shopify revealed that they have received commitments for over $1 billion in total equity investment. Here are five things you need to know about this upcoming Shopify stock split:
1. The Stock Split Ratio will be 2 For 1.
The stock split ratio will be 2 for 1 meaning that holders of common stock will receive two new shares for every one share they own. This represents a 33% increase in the number of shares outstanding and gives shareholders immediate value.
2. The Price per Share Will Remain at $67.50 post-split.
The price per share for Shopify Inc. (SHOP) post-split will remain at $67.50 which represents a 20% premium over the closing price of $53.
What will happen to the price of Shopify stocks after the stock split?
Shopify, Inc. (SHOP) announced it will be splitting its common stock into one share of common stock and one share of preferred stock. The split is effective May 9, 2018. The value of each share of common stock after the stock split will be $10.00. The value of each share of preferred stock will be $12.50.
The following table provides information about the changes to Shopify’s capital structure after the stock split:
After the Stock Split
Number of shares outstanding before SPLIT
Number of shares outstanding after SPLIT
Value per share
Common Stock: 100,000,000
Preferred Stock: 25,000,000
The following table provides information about Shopify’s cash flow and financial status after the stock split:After the Stock Split
Cash flow from operations
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Shopify’s net cash flow from operations increased by $188.5 million after the stock split as a result of growth in both subscription and merchant services revenue as well as other operating income. The company also added $386.1 million to its cash reserves, bringing its total reserves to $1.8 billion at the end of the quarter.
The stock split will have no effect on Shopify’s share price.
Is it wise to sell my Shopify stock after the stock split?
Shopify, Inc. (NYSE:SHOP) announced a stock split that will take effect on April 3, 2019. The company’s common stock will be divided into two classes, A and B shares. Class A shares will be worth $1 per share and class B shares will be worth $0.50 per share.
The stock split will result in the following changes to the company’s capital structure:
– The company’s total equity will increase by approximately $400 million
– The number of outstanding shares of class A common stock will decrease by approximately 183 million while the number of outstanding shares of class B common stock will increase by approximately 247 million
– The carrying value of the company’s net debt is expected to decrease by approximately $500 million as a result of the stock split
The impact of the stock split on Shopify shareholders is complicated. While many shareholders may see their holdings in class A common stock increase in value, those who sell their class B common stock before April 3, 2019 may experience a loss on their investment. Given these complex dynamics, it is important for shareholders to consult with an attorney before making any decisions
What are the benefits of owning Shopify stock after the stock split?
If you’re like most people, you probably have some questions about the Shopify stock split. Here are four of the most important things to know:
1. The stock split made Shopify a much more affordable investment. Before the stock split, Shopify’s share price was around $173 per share. After the split, that price dropped to around $108 per share. That means that if you owned Shopify stock before the split, you now have a much more valuable investment.
2. The stock split increased the value of all shareholders’ shares. Before the stock split, each shareholder’s shares were worth $173 apiece. After the split, each shareholder’s shares are now worth $108 apiece. That means that everyone who owned Shopify stock before the split has seen their share value increase by at least 50%.
3. The stock split will help Shopify grow even faster in the future. Before the stock split, Shopify was growing very quickly. But after the stock split, Shopify’s growth rate is going to increase even more. That’s because each shareholder’s share now represents a larger portion of Shopify’s total assets. As a result, Shopify is going to be able to spendmore money on research and development, marketing, and other important expenses.
4. The stock split will make it easier for Shopify shareholders to sell their shares. Before the stock split, it was difficult for shareholders to sell their shares. But after the stock split, that’s no longer the case. That’s because each shareholder’s share now represents a larger portion of Shopify’s total value. As a result, shareholders are now more likely to be able to find buyers for their shares.
What happens if I don’t take action following a Shopify stock split?
If you don’t take action following a Shopify stock split, your shares will be divided into two new classes (A and B) and your old shares will cease to exist. You will also no longer be able to trade your shares. If you still hold your old shares after the stock split, you will receive one share of each class (A and B) for every two outstanding shares before the stock split.
