abrdn Asia-Pacific Income Fund, Inc. Announces Details of Upcoming 1-For-6 Reverse Stock Split
Rhea-AI Summary
abrdn Asia-Pacific Income Fund, Inc. (NYSE American:FAX) has announced a 1-for-6 reverse stock split of its common stock, effective September 9, 2024. This move aims to potentially increase the market price per share and broaden the range of potential investors. Key points include:
- Every six shares will be converted into one share
- The Fund's ticker symbol remains FAX, but with a new CUSIP number
- Monthly distribution will be adjusted from $0.0275 to $0.165 per share
- No change in monthly cash flow to stockholders or distribution on net asset value
- Fractional shares will be sold and proceeds distributed pro rata to stockholders
The reverse split is expected to reduce per share transaction costs and potentially improve market liquidity for the Fund's common stock.
Positive
- Potential increase in market price per share, which may attract a broader range of investors
- Possible improvement in market liquidity for the Fund's common stock
- Reduction in per share transaction costs for buying or selling shares
- No change in monthly cash flow to stockholders or distribution on net asset value despite the reverse split
Negative
- Decrease in the number of outstanding shares, which may affect some investors' holdings
- Potential costs associated with selling fractional shares resulting from the reverse split
News Market Reaction – FAX
On the day this news was published, FAX gained 1.06%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
PHILADELPHIA, PA / ACCESSWIRE / August 19, 2024 / abrdn Asia-Pacific Income Fund, Inc. (NYSE American:FAX) (the "Fund"), a closed-end fund, announced today that the Fund's Board of Directors approved a 1-for-6 reverse stock split of the Fund's common stock.
The Fund anticipates completing a 1-for-6 reverse stock split prior to the open of trading on the New York Stock Exchange (the "NYSE") on September 9, 2024, for common stockholders of record as of the close of business on September 6, 2024. Trading in shares of the Fund's common stock on a split-adjusted basis is expected to begin at the open of trading on the NYSE on September 9, 2024. Shares of the Fund's common stock will continue trading on the NYSE American under its existing ticker symbol (NYSE American: FAX) but will be assigned the new CUSIP number below.
Ticker | Fund Name | Old CUSIP | New CUSIP |
FAX | abrdn Asia-Pacific Income Fund, Inc. | 003009107 | 003009867 |
As a result of the reverse stock split, every six shares of the Fund's outstanding common stock will be converted into one share of common stock. A reverse stock split will decrease the number of the Fund's shares of common stock outstanding and potentially increase the market price per share of common stock by a proportional amount. While the number of the Fund's outstanding shares of common stock will decline, neither the Fund's portfolio holdings nor the total value of stockholders' investments in the Fund will be affected as a result of the reverse stock split. After the reverse stock split, common stockholders' accounts will reflect proportionally fewer shares of common stock with a higher net asset value per share of common stock and each common stockholder will hold the same percentage of the Fund's outstanding shares of common stock as such stockholder held immediately prior to the reverse stock split, subject to adjustments for fractional shares resulting from the reverse stock split (discussed below).
The Fund's current monthly distribution of
The Board of Directors and abrdn believe that increasing the market price per share of the Fund's common stock through the reverse stock split may broaden the range of potential investors in shares of the Fund's common stock, thereby potentially improving the market for, and liquidity of, shares of the Fund's common stock. This would have the effect of reducing the per share transaction costs associated with buying or selling shares of the Fund's common stock in the secondary market.
No fractional shares will be issued as a result of the reverse stock split. Fractional shares that may result from the reverse stock split will be aggregated and sold on the NYSE by the Fund's transfer agent and the proceeds will be distributed pro rata among stockholders who would otherwise have received fractional shares in the reverse stock split. The pro rata cash payment received by stockholders will be net of any customary fees and expenses in proportion to their allocable share of the total proceeds of the sales. Stockholders will be receiving additional information regarding the reverse stock split from Computershare Trust Company, N.A., the Fund's transfer agent.
* * *
In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.
Closed-end funds are traded on the secondary market through one of the stock exchanges. A fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that the Fund will achieve its investment objective. Past performance does not guarantee future results.
# # #
For More Information Contact:
abrdn U.S. Closed-End Funds
Investor Relations
1-800-522-5465
Investor.Relations@abrdn.com
SOURCE: abrdn Asia-Pacific Income Fund, Inc.
View the original press release on accesswire.com
FAQ
When will the 1-for-6 reverse stock split for abrdn Asia-Pacific Income Fund (FAX) take effect?
How will the reverse stock split affect FAX's monthly distribution?
What happens to fractional shares resulting from FAX's reverse stock split?
Will FAX's ticker symbol change after the reverse stock split?
