OTTAWA: Canadian e-commerce giant Shopify on Monday (Apr 11) announced a 10-for-1 split of its class A and class B stock, joining a growing list of companies that have split their shares to make them more attractive for investors.
Shopify also said it would seek shareholder approval to authorise a new class of shares, called the Founder share, to Tobi Lutke, its chief executive officer and founder.
The proposal seeks to preserve the voting power of Lutke, as the Founder share will provide him with a variable number of votes and that combined with his previously owned shares from other classes would represent 40 per cent of the total voting power attached to all of Shopify's outstanding shares.
US-listed shares of Shopify rose 2.9 per cent to US$620 in premarket trading as the company said it was looking to make its stock more "accessible" to investors.
Shopify, which was trading at around US$1,600 in November, was at one point the most valuable Canadian company by market capitalisation. However, the firm lost that title after its stock lost more than half its value this year.
Its move comes on the heels of e-commerce giant Amazon, Google-parent Alphabet as well as video game retailer and "meme" stock GameStop, which have announced share splits this year. Meanwhile, electric vehicle maker Tesla had said it would seek shareholder approval for a stock split.
Shopify said on Monday each shareholder, as of Jun 22, would receive nine more shares on June 28 for each share held.
Currently, the company's class A shares carry one vote per share and class B shares carry 10 votes per share.