TMX Group (X) is proposing to split its stock on a five-for-one basis.
The operator of the Toronto Stock Exchange said the stock split could lead to greater liquidity for its shares.
The company’s stock is currently at $132.22, meaning that a five-for-one split would take the share price down to $26.44.
The company said its board of directors will recommend that shareholders approve the stock split at its annual meeting on May 2 this year.
News of the stock split comes days after TMX Group issued fourth quarter earnings that beat expectations.
The company reported Q4 net income of $102.2 million, up 16% from $87.9 million a year ago. TMX Group also announced that it is increasing its quarterly dividend by 5% to $0.87 per share following the strong results.
TMX Group’s stock has risen 2% over the last year.
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