Aveng share consolidation confusion? Standard Bank’s Richard Hirsch explains
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Standard Bank’s Richard Hirsch explains the implications of the Aveng 500:1 share consolidation that took place on the JSE today. Aveng was trading between 5c and 6c on the local bourse but after the consolidation, has settled around the R27.30 level, which would have previously been a share price of around 5.5c prior to the consolidation. The fundamentals of the business have not changed, the shares in issue have reduced significantly. If you owned 500 Aveng shares at either 5c or 6c, you would now own one share at the current share price of R27.30. The market value of the business hasn’t changed, simply the shares in issue. Many brokerages did not account for this correctly and your portfolio may have rocketed up incorrectly. Learn more about your ad choices. Visit megaphone.fm/adchoices
