$BYD COMPANY (01211.HK)$ The dividend was cleared today. Previously, the company announced plans to increase profit distribution through stock dividends and to capital reserves to increase share capital. The profit distribution plan for 2024 has been adjusted to "distributing a cash dividend of 39.74 yuan (including tax) for every 10 shares to all Shareholders, with a total cash dividend of approximately 12.077 billion yuan, and issuing 8 bonus shares for every 10 shares, along with a conversion of 12 shares for every 10 shares from capital reserves."
This means that the 10 shares originally held by Shareholders will turn into 30 shares, and the company's total share capital will therefore expand threefold. After the implementation of this stock issuance and conversion plan, BYD's total share capital will increase from 3.039 billion shares to 9.117 billion shares.
If holding related warrants or stock derivatives, will the 'warrant price' also 'split three ways'?
According to aastocks, the answer is no, the price of the warrants will not be affected by the ex-dividend. The issuers will only make corresponding adjustments to the terms of related products based on the ex-dividend, including the exercise price of the warrants, the exchange ratio, etc., and the price of the warrants will not be split by 'one for three'.
As for the bull-bear certificates, the relevant redemption prices will also be adjusted on a 'one for three' basis. Investors will not trigger the relevant redemption mechanism due to this single factor of the ex-dividend. However, after the ex-dividend, the circulation of shares, entry thresholds, etc. will have changed, and investors need to assess and pay attention to the associated risks, and monitor whether subsequent fluctuations will cause the bull-bear certificates to reach the relevant redemption prices.