ETFS PHYSICAL GOLD UNDERGOING TEN-TO-ONE SHARE SPLIT
ETFS Metal Securities Australia Limited, the issuer of ETFS Physical Gold (ASX code: GOLD), is conducting a 10:1 share split on ETFS Physical Gold.
How will it impact holders?
After the split, GOLD’s price will be cut from roughly $240 (where it stood on 31 May) to roughly $24. Investors who owned GOLD before the split will own ten times as many shares after the spilt completes. For example, if you hold 5 shares of GOLD on Tuesday 7 June, after the split completes on 20 June you will hold 50 shares (i.e. 5 x 10).
At the same time, the metal entitlement (or value) of every GOLD share will be divided by ten. As such there will be no change in the value of GOLD holders’ investment as a result of the split.
There will be no change to the management fee.
Why is the split happening?
The share split is being conducted to reduce the price of GOLD, from its current price of $240 as of 31 May. And bring it to roughly $24 –which is more closely in-line with other exchange traded products (ETPs).
We understand that retail and smaller investors are increasingly using ETPs to construct portfolios. By lowering the price, we hope that GOLD will have wider appeal to smaller investors.
Furthermore, GOLD is being increasingly used by investors in portfolio construction. A lower price allows these investors to manage their portfolio allocations more precisely.
When is the split happening?
The split is effective from 8 June. From 8 June to 17 June, ETFS Physical Gold will trade under a different ticker: GOLDA. Normal trading on a post-split basis recommences on 20 June 2022. The full timetable is below.
What if I want to sell or buy ETFS Physical Gold during the split?
From 8 June to 17 June – the window during which the split is conducted – ETFS Physical Gold will continue trading but under a temporarily different ticker: GOLDA. Settlement of trades under this temporary ticker will be deferred until 22 June, at which point the split is complete.
What do investors need to do?
No action is required from investors. The split is being managed by ETF Securities and the ASX.
What information will I receive?
Investors will receive confirmation of the number of post-split shares that they hold prior to the recommencement of normal trading on the 20 June.
For any enquiries on this matter, please contact ETF Securities on +61 2 8311 3488 or at infoAU@etfsecurities.com.au.