Canadian Overseas (COPL) Shares Fell 12.5% on Unfavourable Share Consolidation Plans

Practice Stock Trading Your capital is at risk
Simon Mugo
Updated: 27 Sep 2021

Shares of Canadian Overseas Petroleum Limited (LON: COPL) fell 12.5% after the oil company announced a 100 to 1 stock split, negatively affecting some shareholders.


The company noted that it would issue 1 share for every 100 shares held by shareholders to significantly boost its share price, making it more attractive to institutional investors who like buying shares trading at higher prices.

However, investors were unhappy to hear that the company would abolish all fractional shares resulting from the share consolidation in cases where a shareholder has less than 100.

For example, a shareholder with 2056 shares would get 20 new shares after the consolidation, with COPL writing off the 56 extra shares equal to 0.56 shares in the new entity.

The new rule may affect man shareholders who hold shares that are not multiples of 100, hence, today’s decline.

COPL has decided to consolidate its shares after acquiring Atomic Oil & Gas in March of this year, which led to its stock suspension from trading on the London Stock exchange from mid-March to mid-August.

The oil company’s London shares were suspended on March 17, 2021, after which they were cancelled on April 21, 2021, before the enlarged group was listed afresh on the LSE on August 17, 2021.

The share consolidation will become effective on October 1, 2021, after which the company’s shares shall trade at a much higher valuation.

COPL share price.

IG chart of COPL share price 27-09-2021

COPL shares fell 12.5% to trade at 0.28p, falling from Friday’s closing price of 0.32p.

Should You Invest in COPL Shares?

One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .