ABRDN AUSTRALIA EQUITY FUND, INC. ANNOUNCES DETAILS OF UPCOMING 1-FOR-3 REVERSE STOCK SPLIT

Rhea-AI Summary

abrdn Australia Equity Fund (NYSE American: IAF) announced a 1-for-3 reverse stock split to be effective before the market open on October 23, 2025. Trading on a split-adjusted basis is expected to begin at the NYSE open on that date and the Fund will retain ticker IAF on NYSE American with a new CUSIP 003011111 (old CUSIP 003011103).

The reverse split converts every three outstanding shares into one share, reduces share count and proportionally raises per‑share NAV without changing total shareholder value or the Fund's portfolio. The Fund's quarterly distribution policy remains at an annual rate of 10% of the rolling three‑month average NAV. Fractional shares will be aggregated, sold on the NYSE and pro rata cash paid to holders net of customary fees.

Positive

• 1-for-3 reverse split effective Oct 23, 2025
• New CUSIP assigned: 003011111
• Quarterly distribution policy unchanged at 10% annual rate
• Fund expects higher market price per share and potential liquidity improvement

Negative

• Share count will decline by two-thirds after the 1-for-3 split
• Fractional-share proceeds paid in cash net of customary fees
• Reverse split does not eliminate risk of shares trading at a discount to NAV

Insights

Equity Capital Structure Analyst

1-for-3 reverse split scheduled for October 23, 2025; shares consolidated, NAV unchanged, per-share distributions will rise proportionally.

The Board approved a 1-for-3 reverse stock split that will consolidate every three existing shares into one share and assign a new CUSIP (003011111). The action reduces the outstanding share count and should increase the market price per share proportionally while leaving the Fund's portfolio holdings and total shareholder value unchanged.

The Fund retains its stated quarterly distribution policy at an annual rate of 10% of the rolling average NAV; post-split shareholders may see a higher per-share distribution consistent with fewer shares outstanding. Fractional shares will be aggregated and sold, with net proceeds distributed after customary fees, which may create small cash adjustments for some holders.

Key dependencies and near-term items to watch include trading on a split-adjusted basis beginning at the open on October 23, 2025, the operational handling of fractional-share cash payments by Computershare, and whether the higher nominal share price materially affects trading interest or liquidity. Based solely on disclosed facts, this is a structural housekeeping action that has neutral economic effect on investor pro rata value in the short term.

PHILADELPHIA, Oct. 8, 2025 /PRNewswire/ -- abrdn Australia Equity Fund, Inc. (NYSE American: IAF) (the "Fund"), a closed-end fund, announced today that the Fund's Board of Directors approved a 1-for-3 reverse stock split of the Fund's common stock.

The Fund anticipates completing a 1-for-3 reverse stock split prior to the open of trading on the New York Stock Exchange (the "NYSE") on October 23, 2025. 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 October 23, 2025. Shares of the Fund's common stock will continue trading on the NYSE American under its existing ticker symbol (NYSE American: IAF) but will be assigned the new CUSIP number below.

Ticker	Fund Name	Old CUSIP	New CUSIP
IAF	abrdn Australia Equity Fund, Inc.	003011103	003011111

As a result of the reverse stock split, every three 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 reverse stock distribution does not alter the Fund's commitment to its current policy of paying quarterly distributions at an annual rate of 10% of the rolling average of the Fund's NAV over the preceding three-month period ending on the last day of the month immediately preceding the month of the Fund's declaration date. The percentage of NAV used to calculate distributions remains unchanged. However, shareholders may observe a higher per-share distribution amount post-split, consistent with the reduced share count.

The Board of Directors and Aberdeen 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, Aberdeen Investments Global is the trade name of Aberdeen's investments business, herein referred to as "Aberdeen Investments" or "Aberdeen". In the United States, Aberdeen Investments refers to the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.

The value at which a closed-end fund stock may trade on a public exchange is a function of external market factors that are not at the control of the Fund's Board or Investment Advisor. Closed-end Fund shares may therefore trade at a premium or a discount to net asset value at any given time. Shareholders should be aware that a fund trading at a premium to net asset value may not be sustainable and a fund's discount to net asset value, can widen as well as narrow. Shareholders of a fund trading at a premium who participate in that fund's dividend reinvestment plan should note the reinvestment of distributions may occur at a premium to net asset value. 

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.

abrdn Australia Equity Fund, Inc. | Aberdeen

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SOURCE abrdn Australia Equity Fund, Inc.

FAQ

When will abrdn Australia Equity Fund (IAF) complete the 1-for-3 reverse stock split?

The Fund expects the 1-for-3 reverse stock split to be completed prior to the NYSE open on October 23, 2025 with split-adjusted trading beginning that day.

What happens to my shares of IAF after the 1-for-3 reverse split?

Every three shares will convert into one share; total investment value and percentage ownership remain the same, subject to cash payments for fractional shares.

Will IAF’s dividend or distribution policy change after the reverse split?

No. The Fund’s quarterly distribution policy remains an annual rate of 10% of the rolling three‑month average NAV; per‑share amounts will reflect the reduced share count.

How will fractional shares be handled for IAF in the reverse split?

No fractional shares will be issued; fractional interests will be aggregated and sold on the NYSE and holders will receive pro rata cash payments net of customary fees.

Will IAF continue trading under the same ticker after the reverse split?

Yes. Shares will continue trading on NYSE American under ticker IAF, but the Fund will use a new CUSIP 003011111.

Does the reverse split change the Fund’s NAV or portfolio holdings?

No. The reverse split reduces share count and increases NAV per share proportionally but does not change the Fund’s portfolio holdings or total shareholder value.