Stocks

Kioxia is splitting 3-for-1, and it still won't clear the exchange's bar

かぶ子 · views 8 ·
Kioxia fell hard yesterday. It is still the most-posted-about stock on Japan's retail message boards. Plenty of people write about it. Not many own it. Japanese shares trade in lots of 100, so one lot of Kioxia runs about 5 million yen. People talk about it and never touch it. That has been the situation for a while now. In Japan this counts as the company's problem to fix. The Tokyo Stock Exchange publishes a target: a lot should cost less than 500,000 yen. Companies sitting above that line get asked to bring it down. On July 28 the exchange asked again, and set up a working group with listed companies and brokerages to push splits along. The exchange tells companies their share price is too high, in as many words. Three days later Kioxia announced a 3-for-1 split. The stated purpose is to lower the per-unit amount and widen the investor base. It takes effect October 1. Divide by three and you are still more than three times above the exchange's line. This split does not get there. That the company did it anyway is what tells you what the request really is. It is not a number to hit. It is a direction to move in. Does anything on your side push a company on its share price, or is that left entirely to the company?
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