Amplitude Energy to Cut Shares from 3.2 Billion to 290 Million Pending Vote
Amplitude Energy Limited has announced a proposed 11-for-1 share consolidation, pending shareholder approval at its upcoming AGM. This move aims to streamline its capital structure following a recent entitlement offer.
- Proposed 11-for-1 security consolidation
- Shareholder approval sought at 6 November 2025 AGM
- Consolidation affects ordinary shares, share appreciation rights, and performance rights
- Key dates include last pre-consolidation trade on 10 November and issue date on 19 November
- Final share count depends on outcome of retail entitlement offer
Background and Proposal
Amplitude Energy Limited (ASX – AEL), an oil and gas exploration and production company, has revealed plans to consolidate its securities on an 11-to-1 basis. This means every 11 existing shares will be combined into one new share, effectively reducing the total number of shares on issue. The consolidation will also impact related securities such as share appreciation rights and performance rights.
The proposal is subject to shareholder approval at the company’s Annual General Meeting scheduled for 6 November 2025. Detailed information about the consolidation is included in the AGM Notice of Meeting, highlighting the company’s intent to simplify its capital structure.
Timeline and Process
If approved, the consolidation will take effect on 7 November 2025. The last day for trading pre-consolidation shares will be 10 November, with trading in the consolidated shares commencing on a deferred settlement basis from 11 November. The record date for the consolidation is set for 12 November, and the official issue date for the new shares is 19 November 2025. Normal trading on a T+2 settlement basis will resume on 20 November.
Notably, fractions resulting from the consolidation will be rounded up to the nearest whole number, ensuring shareholders do not lose fractional entitlements.
Capital Structure and Entitlement Offer Impact
Prior to consolidation, Amplitude Energy had approximately 3.2 billion ordinary fully paid shares on issue. Post-consolidation, this number will reduce to around 290 million shares, subject to rounding and the final outcome of a retail entitlement offer expected to complete on 16 October 2025. This entitlement offer, announced in late September, will issue approximately 79.7 million new shares, which will influence the final share count after consolidation.
The consolidation is part of a broader capital management strategy, likely aimed at improving liquidity and aligning the company’s share price with market expectations. It also reflects a common practice among ASX-listed companies to maintain an optimal capital structure following equity raisings.
Regulatory and Approval Status
The company has confirmed that shareholder approval is the key outstanding condition for the consolidation. Other regulatory approvals, including from ASIC and ACCC, are not required for this process. The company has not yet received shareholder approval, which will be determined at the upcoming AGM.
Investors should note that the consolidation will affect all classes of securities, including ordinary shares, performance rights, and share appreciation rights, with exercise prices adjusted accordingly.
Bottom Line?
The consolidation vote at the AGM will be a pivotal moment for Amplitude Energy’s capital structure and investor appeal.
Questions in the middle?
- Will shareholders approve the 11-for-1 consolidation at the AGM?
- How will the retail entitlement offer final numbers affect the post-consolidation share count?
- What impact will the consolidation have on trading liquidity and share price volatility?
