Shopify is looking to split its stock at a 10-1 ratio, thereby allowing more investors access to shares. This would be the first stock split for the e-commerce giant since it went public in 2015.
The board approved the stock split and would need a two-thirds majority vote from shareholders at the annual shareholder meeting on the 7 of June 2022.
Many tech companies have followed similar strategies of late in a bid to make their shares more attractive at a lower price to retail investors.
Shopify's shares have seen a significant decline in the past 152 days, down 71% from the November 2021 high of $1763 down to the $600 region.
The board also announced that it is seeking approval of a special “Founder Share” to protect CEO Tobi Lutke's voting power while still an executive of the Canadian eCommerce giant. This new type of share would increase his voting power to 40%.
“Tobi is key to supporting and executing Shopify's strategic vision and this proposal ensures his interests are aligned with long-term shareholder value creation,” Robert Ashe, Shopify's lead independent director
Tech stocks have experienced a turbulent start to the year, with many in the red as investors flee high-risk assets. The latest consumer price index of 8.4% for March 2022 will do little to encourage retail investors to invest in the likes of Shopify with inflation at a record high.
Shopify has made significant update to its e-commerce platform. New features such as Shopify Markets, which makes selling internationally easier, are sure to be popular among merchants which might help the stock price long term.