GSK PLC (LSE:GSK, NYSE:GSK) has completed its share consolidation process after spinning off consumer health business Haleon PLC (LSE:HLN, NYSE:HLN).
The FTSE 100 group, now a ‘fully focused biopharma company’ after the demerger at the start of the week, said the consolidation applied a ratio of four new ordinary shares for every five existing ordinary shares.
As a result, the total number of GSK shares was 4.311bn, with 4.07bn of voting rights, as at 19 July.
READ: What 'New GSK' will look like after the Haleon spin-off
Ahead of its second quarter results next Wednesday, GSK clarified the changes to its dividend per share payments after the consolidation, with the pay-outs increased to maintain the same aggregate dividend spend for the company in absolute sterling terms.
Where it had targeted a 27p per share dividend pledged for the first half of 2022, the company said its expected dividend for the second quarter of 2022 will be 16.25p per share, taking into account the dividend of 14p per share paid for the first quarter of 2022.
The targeted 22p per share dividend for the second half of 2022 will become 27.5p per share, while the 45p per share dividend for 2023 is now expected to be 56.25p per share.
Analysts at Barclays and elsewhere were also adjusting their numbers for GSK now they no longer need to call it ‘New GSK’.
Barclays said it is keeping its ‘equal weight’ rating and 1800p share price target.
“What keeps us on the sidelines is the delta from our forecasts vs the company’s 2031 guidance (company guided for £31bn of revenues and we’re at £25bn),” said pharma analyst Emily Field.
After Barclays analysts held at least 80 calls with clients on the demerger over the past few weeks, Field said they “get the sense that investors are optimistic with regards to the near-term momentum at GSK, particularly given the recent positive readout from the RSV vaccine in older adults”.
However, she added, “longer-term investors we’ve spoken to (and we’d include ourselves in this camp) want to see a bit more productivity out of the pipeline before turning more positive on shares”.