BDO's 20% stock dividend approved by SECBDO [BDO 130.0 0.1%] [link] disclosed that on November 29, the SEC approved the company’s 20% stock dividend that was approved by shareholders back in April. The stock dividend will be used to “fund” the increase in BDO’s authorized capital from P5.5 billion to P8.5 billion. It’s a quick, cheap, and relatively easy way for a company to raise its authorized capital stock. It doesn’t really change anything for shareholders; sure, they get more shares, but their proportional holdings won’t change at all. It’s like a small stock-split, but with the added bonus of allowing BDO to raise its authorized capital stock.

Source: Philippine Star December 02, 2022 12:29 UTC