Tunisian Insurance and Reinsurance Company - STAR - to Implement Share Split and Capital Increase
The Tunisian Insurance and Reinsurance Company - STAR - will implement the decision made by its Ordinary General Assembly on April 22, 2025, regarding the reduction of the nominal value of its shares and the increase of its capital.
Share Split Details
- The nominal value of the share will decrease from 10 to 5 dinars, resulting in an increase in the number of shares composing the insurer's capital to 4,615,386 shares.
- The effective date of this operation is set for December 22, 2025.
Capital Increase Details
- The capital increase will be carried out through the incorporation of reserves, amounting to 26,923,085 dinars, to be withdrawn from the carried-over account.
- The company's social capital will increase to 50,000,015 dinars, divided into 10,000,003 shares with a nominal value of 5 dinars each.
- The effective date of this operation is also set for December 22, 2025.
- New shares will be allocated to existing shareholders and holders of rights to attribution on the stock exchange at a ratio of 7 new shares for 6 old shares.
- The entitlement date for the new free shares is set for January 1, 2025.
Impact on Share Price and Investor Perception
This decision, combined with respectable financial performance, explains the stock's yield since the beginning of the year, which stands at 29.44%. Historically, investors have always appreciated share split operations. From a psychological standpoint, a lower unit price after the split gives the impression of a more accessible share and can remove a mental barrier to buying, often creating a bullish anticipation effect. The split improves the liquidity of the stock and tends to reduce price gaps. Additionally, this decision is generally perceived as a sign of confidence from the company in its future growth. However, it is essential to remember that such an operation does not change the fundamental value of the company. It is entirely neutral, similar to exchanging a banknote for coins.
