Naspers Shares to Trade ‘Cheaper’ After Announcing 5-for-1 Stock Split

Naspers, one of the most expensive shares on the JSE, has announced a five-for-one share subdivision, commonly referred to as a stock split. This means that for every one Naspers N Ordinary Share, investors will receive four additional shares after the split

The decision comes as Naspers shares trade at prices significantly higher than the JSE Top 40 average, making them less accessible to a broader range of investors. 

The board has highlighted two main objectives for the subdivision:

• Enhancing accessibility to Naspers shares for a wider base of investors,
• And aligning the price per Naspers N Ordinary Share more closely with Prosus N.V., Naspers’s primary subsidiary.

For context, Naspers has two classes of shares:

• N Ordinary Shares are the more widely traded and liquid option, each carrying one vote but with relatively limited control rights.
• A Ordinary Shares, meanwhile, are scarce and largely held by founding entities. Each carries 1,000 votes, giving holders disproportionate influence despite having a smaller economic stake.

This subdivision will apply to both share classes, with the impact on N Ordinary Shares particularly significant given that more than 28,000 EasyEquities investors currently hold them. Importantly, the subdivision does not change the overall value of the company or shareholder wealth. Instead, it increases the number of shares in circulation while reducing the per-share price. 

How Stock Splits Work

Stock splits are typically performed by announcing a split ratio, dividing each share into the specified number of new shares, and adjusting the share price downward in proportion to the split. 

For example, a shareholder with 10 shares before the split will hold 50 shares afterward, with the total value of their investment remaining the same.

For shareholders:

• This means the share price decreases while more shares are credited to their accounts, market liquidity and accessibility are expected to improve.
• Ownership percentages, economic rights, and voting rights remain unchanged.
• The stock may become more attractive to new investors, potentially boosting trading activity. 

Important Dates and Shareholder Communication

EasyEquities will communicate directly with all shareholders holding Naspers shares on the close of the last date to trade, ensuring investors are informed of the process and its impact on their portfolios.

• The last date to trade is 30 September 2025 
• Shares to be credited on 06 October 2025. 

Naspers shares are available on EasyEquities, allowing investors to buy full or fractional shares. 

Naspers Boosts AI Investments, Stock Split Increases Accessibility

Beyond corporate actions, Naspers has been actively expanding its presence in artificial intelligence, focusing on tools that simplify complex tasks for businesses and professionals. According to Business Day, its international unit, Prosus, recently led a $30 million funding round in Fundamental Research Labs, which developed Shortcut, described as “the first superhuman Excel agent,” capable of completing advanced spreadsheet tasks ten times faster than humans. This positions Naspers alongside other top technology investors using AI to enhance productivity in data-heavy tasks. 

Naspers is expanding its AI investments. Prosus backed India’s Arivihan, an AI-driven student coaching start-up, while in South Africa, AI is being applied at Takealot to boost efficiency and growth. As CEO Fabricio Bloisi explained, AI helps “enhance core infrastructure and create competitive advantages for the business,” highlighting the company’s broader commitment to leveraging technology to transform operations and unlock new growth opportunities.

The stock split makes it easier for investors to own a full Naspers share, providing more affordable access to the company’s expanding AI ventures. With additional shares available at a lower per-share price, investors can participate more flexibly, whether through fractional investing or gradually building a larger position.

Sources – EasyResearch.

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