Corporate actions: splits, consolidations and new issues

The number of shares a company has is not fixed. It can split each share into several, merge several into one, issue new shares to raise money or buy some back. These events are called corporate actions, and they change the meaning of every per-share figure you look at: the price, earnings per share, dividend per share and book value per share. This guide explains the main corporate actions in Uzbekistan, what the Law on joint-stock companies requires for each, and how to adjust your numbers so that you compare like with like.

All legal references below are to the Law on joint-stock companies and protection of shareholders' rights, as of 26 September 2026 (lex.uz).

Splits and consolidations

By a decision of the general meeting of shareholders, a company may:

• Split its placed shares, so that one share is converted into two or more shares of the same type.
• Consolidate its placed shares, so that two or more shares are converted into one new share of the same type.

In both cases the charter is amended to change the nominal value and the number of authorised shares (Article 43). Splitting and consolidating shares is within the competence of the general meeting (Article 65). The nominal value of a share may not be less than one hundred soʻm (Article 25), which limits how far a split can go.

A split or consolidation does not change what the company is worth or what you own. Here is a hypothetical example with illustrative numbers:

• Before a 1-for-10 split, you hold 1,000 shares with a nominal value of 1,000 soʻm, and the price is 5,000 soʻm. Your holding is worth 5,000,000 soʻm.
• After the split, you hold 10,000 shares with a nominal value of 100 soʻm. If nothing else changes, the price should be about 500 soʻm, and your holding is still worth about 5,000,000 soʻm.

A consolidation works in reverse. After a 10-into-1 consolidation, 1,000 shares become 100, and the price should be about ten times higher. If your holding does not divide evenly, read the decision to see how fractions are handled.

Adjusting prices and per-share data

After a split or consolidation, old per-share numbers must be restated before you compare them with new ones:

• Prices. Divide prices before a 1-for-10 split by 10. Otherwise a chart shows a 90% crash that never happened.
• Earnings and dividends per share. Divide pre-split figures by the same factor. A dividend of 60 soʻm per share before a 1-for-10 split is equivalent to 6 soʻm per share after it.
• Book value per share. Same rule.

The simplest way to avoid mistakes is to work with company-level totals, such as net profit and total dividends, and divide by one share count at the end.

New share issues

A company can increase its charter capital by increasing the nominal value of its shares or by placing additional shares (Article 21). The main rules are:

• Additional shares can be placed only within the number of authorised shares set in the charter (Article 21), and the decision is taken by the general meeting or by the supervisory board if the charter or the meeting gives it that right.
• Shares must be placed within one year of the state registration of their issue (Article 36).
• Shares are paid for at market value. They may be placed below market value only to shareholders using a pre-emptive right, at no less than 90% of market value, or through an intermediary within the limit of its fee (Article 37).
• The charter may give holders of voting shares a pre-emptive right to buy new shares paid for in money, in proportion to their holdings. The general meeting may waive this right for an open subscription for up to one year (Article 39). Shareholders must be notified at least 30 days before placement starts, and the list of those with the right is drawn from the register on the date of the issue decision (Articles 39 and 40).

Under the Law on the securities market, an issue of securities, its suspension or resumption, and a decision that an issue has failed or is invalid are essential facts that must be disclosed within two working days (Article 39, lex.uz, as of 26 September 2026).

What a new issue means for you

New shares dilute existing holders unless they buy their share of the issue. Take a hypothetical company with illustrative figures:

• 80 million shares, net profit 10.2 billion soʻm, so earnings per share are 127.5 soʻm
• Equity 130 billion soʻm, so book value per share is 1,625 soʻm
• It issues 20 million new shares at 1,200 soʻm, raising 24 billion soʻm

After the issue there are 100 million shares and equity of 154 billion soʻm. Book value per share falls to 1,540 soʻm, because the new shares were sold below the old book value. Earnings per share fall to 102 soʻm unless the new money raises profit. The issue is good for existing shareholders only if the company earns a strong return on the new capital.

If you hold 8,000 shares and the charter gives you a pre-emptive right, you could buy 2,000 of the new shares (25% more, like everyone else) and keep your percentage stake. Our guide to revenue and earnings growth shows why net profit growth and earnings-per-share growth can differ after an issue, and the guide to P/B for banks explains why banks in particular raise new capital.

Buybacks

A company may buy back its own shares by a decision of the general meeting to reduce charter capital, if its charter allows, or for later resale. Shareholders must be notified at least 30 days before the buyback period, and the period itself cannot be shorter than 30 days. Shares bought back carry no vote and receive no dividends, and must be resold within a year or the charter capital reduced (Article 41). A buyback that cancels shares raises every remaining holder's share of profit.

Where to find corporate actions

Decisions on splits, consolidations, issues and buybacks appear as essential facts on openinfo.uz, in the decisions of the general meeting and in the notices of securities issues. Read the full decision: it states the ratio, the dates and, for issues, the price and who can buy.

Where Finmind helps

Each public stock page, for example Ipoteka-bank (IPTB), lists the shares outstanding of that class and a dated timeline of the issuer's filings on openinfo.uz, each linking to its source. In the reported history, the earnings-per-share series divides each year's net profit by one share count, and the page states the date that count was read. Finmind's company analysis page, a paid feature, adds a corporate-actions timeline built from openinfo.uz: share issues, splits, consolidations, failed or annulled issues, redemptions, buybacks, listings, delistings and dividend decisions, with registration numbers and dates where the source gives them.

This article is for education only and is not investment advice. Investing in securities involves risk, including the loss of money you invest.