(Bloomberg) — Nvidia Corp. shares jumped Friday after the graphics-chipmaker said it would split its shares 4-for-1 in an effort to make them more accessible to investors and employees.
The split, in the form of a stock dividend, is subject to shareholder approval at the Santa Clara, California-based company’s annual meeting on June 3, Nvidia said in a statement Friday. The move, if approved, would increase the common stock to 4 billion shares. The shares jumped 3.1% as trading got underway in New York Friday.
Currently Nvidia has about 622.4 million shares outstanding, valuing the company at $363.8 billion, based on Thursday’s closing share price of $584.50. The stock has gained 12% so far this year.
If shareholders approve the plan, each Nvidia stockholder of record on June 21 will receive a dividend of three additional shares of common stock for every share held, to be distributed after the close of trading on July 19. Trading is expected to begin on a stock split-adjusted basis on July 20.
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