Gulf Keystone Petroleum Limited (LON:GKP) shares will be repriced above a pound before Christmas, because the group is planning to consolidate its share capital.
The Kurdistan oil firm, following its debt-for-equity swap, now intends to reduce the number of shares in issue from 22.94bn down to 228.4mln. Shareholders will receive 1 new share for every 100 they hold.
“The number of existing common shares significantly increased as a result of the recently completed restructuring,” Gulf Keystone said in a stock market statement.
“The board considers that the current issued share capital is considerably higher than similar sized companies listed on the London Stock Exchange and it believes that this affects negatively investors' perception of the company.”
It added: “The directors believe that the consolidation may improve the liquidity and marketability of common shares to a wider range of investors, including institutional investors and that the consolidation will make the common Shares a more attractive investment proposition.”