DuPont approves '3-in-1' reverse stock split, shares rise slightly after hours

DuPont, a U.S.-based materials and chemical company, announced on Tuesday that it will implement a "3-for-1" reverse stock split for its company's shares. This plan has been approved by both the shareholders' meeting and the board of directors and will officially take effect after midnight on June 24th.

Based on the number of shares as of last Friday, this merger will result in the company's outstanding share count being reduced from approximately 405.1 million to about 135 million. At the same time, the total number of shares legally authorized for issuance will also be reduced by one-third. For shareholders with fractional shares resulting from the split, DuPont stated that Computershare Trust Company, the share registrar, will directly pay equivalent cash.

Alongside the announcement of the stock split plan, DuPont reaffirmed its financial guidance for the second quarter and the full year. After considering the capital changes brought by the reverse stock split, the company currently anticipates adjusted earnings per share for the second quarter to be $1.75, with the full-year adjusted earnings per share expected to range between $7.02 and $7.16.

Affected by this news, DuPont's stock rose approximately 0.8% to $49.50 in after-hours trading on Tuesday. In the regular trading session for the day, the stock closed up 2.8% at $49.46, with a year-to-date cumulative increase of 23%.