TRUSTCO will be implementing a share consolidation, also known as a reverse stock split, to international investors that will combine its shares.
According to a statement issued by Trustco on Wednesday, the move will align the company’s shares with its American Depositary Receipts (ADRs), which are used by United States investors.
This change means shareholders will own fewer shares but each share will be worth more.
“The board of Trustco has approved and recommended to shareholders for approval the consolidation of shares at a ratio of 20:1,” noted the statement.
This means for every 20 shares owned, shareholders will now have one share at the same value.
Trustco’s deputy chief executive Quinton Z van Rooyen said the alignment will strengthen its relationship with investors.
“This share consolidation is another step in unlocking that potential. By taking these steps, we are positioning Trustco to not only meet the expectations of international markets but to thrive in them,” said van Rooyen.
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