Popular Inc. announced Wednesday that the 1-for-10 reverse split of its common stock, $0.01 par value per share, became effective Tuesday. Banco Popular de Puerto Rico’s parent company’s common stock is now trading on a split-adjusted basis.
The reverse stock split reduced the number of shares of common stock authorized under the Corporation’s Restated Certificate of Incorporation from 1,700,000,000 to 170,000,000 shares, without any change in par value per common share. The reverse split did not change the number of shares of the bank’s authorized preferred stock, which remains at 30,000,000.
As News is my Business reported, transaction was approved during an Apr. 27 stockholders meeting in San Juan.
The reverse stock split is expected to lead Popular’s common stock to trade at approximately ten times the price per share at which it trades prior to the effectiveness of the reverse stock split.