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Bombardier (BDRAF, BDRBF) says it will seek approval at the annual shareholder meeting in May for a reverse stock split that could range between 10-for-1 and 30-for-1.
The Canadian planemaker says it wants to adjust the number of shares to a level comparable with those of companies with similar market value on the Toronto Stock Exchange.
The company’s board would determine the exact ratio of an authorized reverse split at a later date.
As of the close of trading Friday, Bombardier’s market cap totaled nearly $3.6B; it has almost 2.1B Class B shares and 308.7M Class A multiple-voting shares.
Bombardier is “slowly getting credit for its strong progress toward its 2025 targets,” and “an upward revision seems inevitable,” JP Research writes in a bullish analysis posted recently on Seeking Alpha.
