McDermott International Implements Significant Share Consolidation Strategy

McDermott International Implements 125-to-1 Share Consolidation

On January 28, 2025, McDermott International, Ltd. announced a significant decision for its shareholders—a 125-to-1 share consolidation, also referred to as a reverse stock split. This strategic move aims to streamline the number of its Class A ordinary shares from approximately 3.55 billion to around 28.42 million. The change will adjust the par value of these shares from $0.001 to $0.125.

This decision was made following careful consideration by the company's Board of Directors, leveraging the company's share price as of January 16, 2025. It falls within the constraints set by the company's members during a special general meeting on December 2, 2024. Expected to take effect by January 29, 2025, the shares will initially trade under the symbol MCDID for 20 business days, before reverting to MCDIF.

Importantly, this consolidation is associated with the recent redemption and exchange of all outstanding Series A preference shares into Class A Ordinary Shares. As a result, for every 125 Class A Ordinary Shares currently held, those shares will automatically combine into one share. Notably, this process will impact all shareholders uniformly without requiring any action on their part.

The implications of this share consolidation could be significant for McDermott's long-term strategy and market positioning. The move aims to enhance the share price's stability and potentially make the stock more appealing to investors, as it might limit the volatility often seen in stocks with a very high share count. Additionally, it allows the company to simplify its capital structure, which could support future investment opportunities and growth initiatives.

About McDermott International

McDermott is recognized as a premier provider of engineering and construction solutions within the energy sector. With a workforce of over 30,000 and operations in more than 54 countries, the company is committed to harnessing energy resources responsibly, transforming them into necessary products for global markets. McDermott’s innovative approach and adept handling of complex projects positions the company at the forefront of the energy industry, establishing a foundation for a sustainable future. The company maintains a diverse fleet of marine construction vessels and fabrication facilities worldwide.

This share consolidation marks an essential step in McDermott's continuous evolution, reflecting its dedication to enhancing shareholder value while navigating the ever-dynamic landscape of the global energy market. The company is optimistic that this strategic move aligns with its vision of improving market performance and driving long-term growth.

Forward-Looking Statements

As with any corporate initiative, there are inherent risks and uncertainties attached to the forward-looking statements related to this share consolidation. Market conditions and stock price volatility could affect the expected benefits of this initiative, and the company does not undertake responsibility for updating the statements that may be contingent upon emerging data or changes in the market landscape.

For further information, visit McDermott’s official website.