Fujikura's Strategic Move: Stock Split Announcement
Fujikura Ltd. has recently held a board meeting where it officially decided to implement a stock split along with amending certain provisions in its bylaws. This strategic decision is aimed at lowering the investment threshold for individual investors, thereby broadening the company’s investor base.
Overview of the Stock Split
1.
Purpose of the Stock Split
The primary objective behind the stock split is to reduce the investment unit price of Fujikura’s shares. By doing so, the company seeks to create a more favorable environment for investment, particularly alleviating the financial burden on individual investors who may wish to participate in the market.
2.
Method of the Stock Split
The split will be effective as of March 31, 2026. On this date, shareholders listed in the final shareholder register will experience a stock split in which each ordinary share held will be divided into six shares. This adjustment is expected to significantly increase the liquidity of Fujikura shares in the market.
3.
Increase in Share Count
The impact of this stock split on Fujikura’s total shares is as follows:
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Current Total Issued Shares: 295,863,421 shares
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Additional Shares from Split: 1,479,317,105 shares
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Total Issued Shares After Split: 1,775,180,526 shares
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Total Possible Issued Shares After Split: 7,000,000,000 shares
4.
Timeline for the Stock Split
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Announcement Date for Record Date: March 16, 2026
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Record Date for Shareholders: March 31, 2026
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Effective Date of the Split: April 1, 2026
5.
Additional Information
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Year-End Dividend: The stock split, effective on April 1, 2026, means that dividends relevant to the fiscal year ending March 2026 will apply to the shares before the split.
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No Change in Capital Amount: It is important to note that there will be no changes to the company’s capital amount as part of this stock split.
Bylaw Amendments
1.
Reason for the Change
In conjunction with the stock split, Fujikura will amend its bylaws in accordance with Article 184, Paragraph 2 of the Company Act, specifically altering Article 6 concerning the total possible issued shares.
2.
Details of the Changes
Below are the current and proposed provisions:
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Current Provision: The total possible issued shares of the company shall be 1.19 billion shares.
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Proposed Provision: The total possible issued shares of the company shall be 7 billion shares.
3.
Effective Date of Bylaw Changes
The amendments will also take effect on April 1, 2026.
In summary, Fujikura’s decision to undertake a stock split and amend its bylaws reflects its commitment to making investments more accessible to a broader range of investors. By increasing the liquidity and lowering the investment costs associated with its shares, the company positions itself for greater market engagement and improved investor relations as it moves toward the effective date of April 1, 2026.