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How do I set up a share split?
Alison Perkins avatar
Written by Alison Perkins
Updated over 2 months ago

Please feel welcome to contact us if you would like to execute a share split on your share register. Whilst it's possible to set up your own share split, the Orchestra team can help out to make this quick and easy. A support fee may apply and the share split can usually be completed within a couple of business days.

What is a share split?

A share split increases the number of shares in a company by issuing more shares to current shareholders.

Share splits are done by a pre-defined split ratio. A 1:2 share split would be a doubling of the total balance of shares. A 1:10 share split would increase the total balance of shares by ten times.

After a share split the share price will be reduced as the number of shares has increased.

How does a share split affect shareholdings?

A share split increases the size of shareholdings in a company.

Here is a share split example:

A company increases its total balance of shares by ten times by doing a 1:10 share split.

  • Total balance of shares before the split = 10,000

  • Total balance of shares after the split = 100,000

If Shareholder A has 356 shares before the split then they will have 3,560 shares after the split. Shareholder A will be issued 3,204 shares by the company to increase their shareholding from 356 to 3,560 shares (the percentage of the company the shareholder owns remains unchanged).

How do I enter a share split on my share register?

1. Create a new funding round.

2. Issue shares to each shareholder.

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