Russian developer PIK's board of directors considering share consolidation, cancellation of dividend policy

MOSCOW. Oct 8 (Interfax) - The board of directors of PJSC PIK SZ is considering the issue of share consolidation on Wednesday, the company said on its disclosure feed.

PIK has not yet disclosed the proposed reverse split ratio. The current price of the developer's shares is around 500 rubles per share. The last closing price was 539.6 rubles.

Consolidation is a less common procedure compared to a split in Russian corporate practice. Generally, it is used by issuers who want to make their shares a more convenient instrument for the market (as VTB did, for example, which unlike PIK had a historically low face value and market price per share).

PIK's board of directors is also considering the cancellation of its dividend policy. The current dividend policy was approved in 2021; it provides for the payment of no less than 30% of adjusted net profit to International Financial Reporting Standards (IFRS).