Shares of Rurelec Plc (LON: RUR) today surged 191.85% higher as investors cheered the High court of Justice decision to uphold its capital reduction programme.
Rurelec is a power generator and power plant developer with an operational combined cycle gas thermal power plant in Argentina.
The High Court ruled in Rurelec’s favour allowing it to split its existing ordinary shares into 561.4 million ordinary shares and 561.4 million deferred shares. The firm is now looking to cancel the deferred share.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
The reduced share capital means that the company now has higher distributable reserves, hence, could start paying dividends in the near future.
Rurelec had previously said: “At present, the company does not have sufficient distributable reserves to pay dividends or – if the shareholders give appropriate authority in the future – to buy-back ordinary shares. The board, therefore, proposes that the capital reorganisation and capital reductions be effected in order to increase the distributable reserves of the company, which will facilitate these actions should the board consider it desirable in the future.”
RUR share price
RUR shares today surged 188% higher to trade at 1.97p having closed yesterday’s session trading at 0.675p.
