Walmart, Inc. will conduct a split of its outstanding shares of common stock at a ratio of 3:1.
The stock split is part of Walmart’s ongoing review of optimal trading and spread levels and its desire for employees to feel that purchasing shares is within reach. More than 400,000 employees participate in Walmart’s Associate Stock Purchase Plan, allowing those eligible to buy stock through payroll deductions and providing a 15 percent company match on the first $1,800 yearly.
“Sam Walton believed it was important to keep our share price in a range where purchasing whole shares, rather than fractions, was accessible to all of our associates,” said Doug McMillon, president and CEO of Walmart, Inc. “Given our growth and our plans for the future, we felt it was a good time to split the stock and encourage our associates to participate in the years to come. As Sam said, ‘We’re all in this together. That’s the secret.'”
The company said in a release that shares issued in the stock split would be payable after market close on February 23 for shareholders of record at the close of business on February 22. Shareholders will receive a distribution of two additional shares of common stock for each share held. Walmart’s common stock will begin trading post-split at the market opening on February 26 under the company’s trading symbol “WMT.” Walmart’s Board approved the stock split and final ratio of Directors.
The company expects that the stock split will increase the number of shares of Walmart’s outstanding common stock from approximately 2.7 billion shares to 8.1 billion shares. As a result of the stock split, the company said that it would make proportionate adjustments to the number of shares of Walmart’s common stock underlying the company’s outstanding stock awards and warrants, the number of shares issuable under the company’s equity incentive plans and other existing agreements, as well as the exercise or conversion price, as applicable; the company’s common stock dividend; and the company’s authorized buyback programs.
Image courtesy Walmart, Inc.
