BankAtlantic Bancorp Inc. in Fort Lauderdale, Fla., said Tuesday that it was planning a 1-for-5 reverse split of its class A and B common stock.
As of April 29, the $3.8 billion-asset company had 61,982,971 outstanding class A shares and 975,225 shares of class B stock. The reverse split will be effective after the market closes on Oct. 14. The class A stock will begin trading on a spilt-adjusted basis beginning Oct. 17.
No fractional shares will be issued during the reverse stock split and any fractional share will be rounded up.
BankAtlantic did not say in a news release why it was pursuing a reverse stock split, but companies typically do so to satisfy listing requirements or boost the share price. Many institutional funds are barred from holding stocks that trade below $5. Earlier this year, for example, Citigroup Inc. completed a 1-for-10 reverse stock split that increased its price per share from roughly $4.40 per share to around $44.
BankAtlantic's shares have traded at below $1 per share for much of this year and have lost nearly 30% of their value since July 1. The shares were trading at 68 cents late Tuesday morning, down 5% from Monday's closing price.