Data#3 Ltd (DTL)

Queensland-based IT services provider Data#3 is set to divide its shares. Every fully paid share in the market will be divided into 10 equal parts. This means the company’s number of issued shares will rise from around 15.4 million to almost 154 million by November 24 if the move is approved at Data#3’s annual general meeting on November 8. The company said the move would increase liquidity for shareholders. Although the move is set to slash the IT service provider’s share price, it should not make a difference to shareholders because each holder will still hold the same value of shares. Analysts believe the relatively strong financial position of the company means more retail investors will be attracted to its lower share price and buy into the stock. The company’s latest results showed a year-on-year increase in revenue from $513.6 million to $586.4 million in FY10-11, and an increase in net profit from $10.9 million to $15 million.