Samsung hopes to lure more investors through stock split


The world's top smartphone producer, Samsung has been trying to revive momentum in its handset business by ramping up efforts to win over consumers seeking handsets with bigger screens.

JOHANNESBURG – Samsung Electronics is hoping that its stock split can widen the pool of investors.

A stock split is a decision by a company&39;s board of directors to increase the number of shares that are outstanding by issuing more shares to current shareholders.

The tech giant&39;s stock split is the latest in a series of moves to bolster shareholder returns.

In further good news for shareholders, Samsung has eased concerns that the huge expansion in the global semiconductor business may be tapering off.

The company says the outlook for 2018 remains strong.

READ: Samsung facing growing threats despite record profits

Chipmakers like Samsung, South Korean rival SK Hynix Inc and Intel Corp, have been riding a boom in sales of semiconductors.

This as the world demands ever greater processing capacity to power data centres, high-tech smartphones and the blockchain ledgers behind cryptocurrencies.

"If the stock split is executed, it just results in a higher number of shares and a drop in the absolute price per share, so the market capitalisation is unchanged. Therefore, this will never have an impact on the company&39;s fundamentals. The stock split has nothing to do with the company&39;s succession process."