Stock Split Corporate Action Implementation

Q: Stock Split Corporate Action Implementation

Effective Date: 29th June 2025 Key Changes: Previous Rule: After a stock split, the additional shares were credited to your account on the “Payment Date.” New Rule: Starting from the effective date, additional shares will be credited to your account on the “Ex-Date” itself (the first trading day after GM Day), and the stock price will be adjusted on the same day. Example: Suppose you hold 1 share before the stock split, with a price of 12.00 Saudi Riyal per share. After the stock split: You will hold 10 shares Each share will be priced at 1.20 Saudi Riyal Your total portfolio value remains unchanged; only the number of shares and the price per share are adjusted Detailed Explanation: 1. Record Date (GM Day): If you hold shares at the end of the General Meeting day (GM Day), you are eligible for the stock split. 2. Eligibility Conditions No pending sell orders: You do not have any open sell orders that have not been executed. No pending share transfers or pledges: Your shares are not subject to any ongoing transfer or pledge processes. 3. Conversion and Availability Conversion Timing: Your 1 share will be converted into 10 shares on the “Ex-Date” (the first trading day after GM Day, i.e., GM+1). Availability: The new shares will be credited to your account and available for trading on the Ex-Date. Note: No action is required from you. The process will be handled automatically, and your total portfolio value will remain unchanged after the split.

Question

Accepted Answer

Effective Date: 29th June 2025

Key Changes:

Previous Rule: After a stock split, the additional shares were credited to your account on the “Payment Date.”
New Rule: Starting from the effective date, additional shares will be credited to your account on the “Ex-Date” itself (the first trading day after GM Day), and the stock price will be adjusted on the same day.

Example:

Suppose you hold 1 share before the stock split, with a price of 12.00 Saudi Riyal per share. After the stock split:

You will hold 10 shares
Each share will be priced at 1.20 Saudi Riyal
Your total portfolio value remains unchanged; only the number of shares and the price per share are adjusted

Detailed Explanation:

1. Record Date (GM Day):

If you hold shares at the end of the General Meeting day (GM Day), you are eligible for the stock split.

2. Eligibility Conditions

No pending sell orders: You do not have any open sell orders that have not been executed.
No pending share transfers or pledges: Your shares are not subject to any ongoing transfer or pledge processes.

3. Conversion and Availability

Conversion Timing: Your 1 share will be converted into 10 shares on the “Ex-Date” (the first trading day after GM Day, i.e., GM+1).
Availability: The new shares will be credited to your account and available for trading on the Ex-Date.

Note: No action is required from you. The process will be handled automatically, and your total portfolio value will remain unchanged after the split.