What is the impact of the three-for-one stock split on my existing shares?

If you owned shares of Imperial Oil Limited before the split, you will now own three times the number of shares you previously held. The total value of your investment should remain the same immediately after the split, as the price per share will be adjusted proportionally (divided by three).

When will the stock split take effect?

The stock split will be effective on May 23, 2006. Shareholders should see the change reflected in their accounts on or after this date.

Why did Imperial Oil increase its authorized share capital?

Increasing the authorized share capital to 1.1 billion common shares gives Imperial Oil more flexibility to pursue future strategic initiatives, such as mergers, acquisitions, stock-based employee incentives, or to raise capital through future stock offerings, without needing to seek further shareholder approval for these specific actions in the short to medium term.

Is there any cost associated with the stock split for shareholders?

Generally, there is no direct cost to shareholders for a stock split. The company bears the administrative costs of implementing the split.

IMO 8-K: Corporate Changes

Summary

Imperial Oil Limited (IMO) has filed an 8-K report detailing significant corporate actions approved by its shareholders at the annual meeting on May 1, 2006. The primary event is the approval of a three-for-one stock split, which will take effect on May 23, 2006. This action is intended to make the company's shares more accessible to a broader range of investors by lowering the per-share price, potentially increasing liquidity and trading volume. In conjunction with the stock split, shareholders also approved an increase in the maximum number of authorized common shares from an unspecified previous amount to 1.1 billion. This expansion of authorized shares provides Imperial Oil with greater flexibility for future corporate activities, such as potential acquisitions, stock-based compensation plans, or additional financings, without requiring immediate further shareholder approval for such actions.

Key Highlights

1Shareholder approval obtained for a three-for-one stock split.
2The stock split is scheduled to become effective on May 23, 2006.
3Maximum authorized common shares increased to 1.1 billion.
4The increase in authorized shares provides future corporate flexibility.
5The filing includes the Certificate of Amendment and Articles of Amendment.

IMPERIAL OIL LTD 8-K Report, Bylaw Amendment (May 3, 2006)

Summary

Key Highlights

Frequently Asked Questions