French IT company Atos (ATOS.PA) announced on Friday that it will implement a reverse stock split to restore investor confidence following a financial restructuring plan completed last year to address a severe debt crisis. The reverse stock split will begin on March 25 and conclude on April 23, with new shares trading from April 24.
Under the split, every 10,000 old shares, each with a nominal value of 0.0001 euros, will be consolidated into one new share valued at 1 euro. The new shares, which are expected to be priced at around 49 euros ($53.02), will start trading on April 24.
Atos’ shares have dropped to all-time lows, trading at approximately half a cent, following a 233-million-euro capital increase last year that led to significant dilution for shareholders. The reverse stock split is intended to reduce stock price volatility and create a more favorable stock market dynamic.
The company, which owns the supercomputers integral to France’s nuclear deterrent, plans to hold a capital markets day in May to unveil its new strategic direction.
