LONDON - National Grid PLC (LSE:LON:NG.), the British multinational electricity and gas utility company, has announced the issuance of new ordinary shares as part of its Scrip Dividend Scheme for the 2024/25 interim dividend. According to the company, the shares are expected to be admitted to the Official List of the Financial Conduct Authority and to begin trading on the London Stock Exchange (LON:LSEG) starting today.
Under the terms of the Scrip Dividend Scheme, 5,586,770 ordinary shares are being issued at a price of 984.16 pence each. Additionally, for U.S. holders of American Depositary Receipts (ADRs), 83,859 ADRs will be issued at a price of $61.9430, each ADR representing five ordinary shares, which includes fractional entitlements and totals 419,295 ordinary shares.
The new shares will rank equally with the existing issued ordinary shares of National Grid. The company has made the necessary application for the shares to be admitted to trading, and dealings are set to commence today.
The Scrip Dividend Scheme allows shareholders to receive their dividends in the form of additional shares instead of cash, which can be beneficial for those looking to increase their stake in the company without incurring brokerage fees. The terms and conditions of the Scrip Dividend Scheme are available on the National Grid website and through Equiniti, a share registration company.
This issuance of shares is based on a press release statement and is intended to provide National Grid's investors with the option to reinvest their interim dividends back into the company. National Grid's move reflects a common practice among established firms to offer scrip dividends as an alternative to traditional cash payouts, providing flexibility for shareholders in managing their investments.
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