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Canadian e-commerce giant Shopify Inc on Monday announced a 10-for-1 stock split of the company's class A and class B shares, joining a growing list of companies that have split their shares to make them more attractive for investors.
U.S.-listed shares of the company rose 2.9% to $620 in premarket trading.
Shopify said each shareholder, as of June 22, would receive nine more shares on June 28 for each share held.
Currently, the company's class A shares carry one vote per share and class B shares carry 10 votes per share.
The company also said it would authorize a new class of shares, called the Founder share, to Tobi Lutke, its chief executive officer and founder.
The Founder share will provide Lutke with a variable number of votes and combined with his previously owned shares from other classes, will represent 40% of the total voting power attached to all of Shopify's outstanding shares.
(Reporting by Chavi Mehta in Bengaluru; Editing by Aditya Soni and Amy Caren Daniel)