CSL has hosed down speculation of a share split to increase the liquidity and affordability of its sky-high stock.
The ASX-listed pharmaceutical firm, whose share price has more than doubled in the past three years to a shade under $200, says there is no reason to emulate the three-for-one spit it undertook in 2007.
Chairman John Shine told Wednesday’s annual general meeting some shareholders have inquired about the possibility of a split, but that the market has changed notably in the past decade.
He said shareholders generally understood a split would not change the fundamental value of the company.
‘Despite the increase in CSL’s share price over the past four to five years, private investors have not been deterred from buying CSL shares, with the number of shareholders increasing from less than 100,000 to more than 150,000,’ Professor Shine said.
‘Also, given the high administrative cost of conducting a share-split (upwards of a million dollars) the board has no current plans.’
CSL shares, worth 74.99 cents in late 1994 and $28.10 as recently as seven years ago, hit an all-time high of $232.40 last month.
They were worth $192.93 at 1348 AEDT on Wednesday.