Naspers, a South African multinational holding company and technology investor listed on the JSE, will implement a five-for-one share split in October, reducing the nominal price of its stock to make it more accessible to smaller investors.

While the split should make the shares appear “cheaper”, the underlying value of the company remains unchanged, and each investor’s proportionate stake in the business is unaffected by the transaction.

Founded in 1915, Cape Town-based Naspers initially focused on publishing before expanding into pay-TV, and later into internet and e-commerce businesses. Its largest source of value today is its majority stake in Prosus, the Amsterdam-listed technology investor created in 2019 to house Naspers’ international assets. Prosus holds about 26% of Chinese tech giant Tencent, making it the single most significant driver of the group’s market valuation.

Naspers announced that the share split, approved at its recent AGM, will apply to both N ordinary and A ordinary shares from October 6, with adjusted prices reflected from that date. Shareholders will receive five shares for every one they currently hold, with no change to the overall value of their holdings.

The move comes as Naspers’ shares reached among the highest nominal values on the JSE, deterring retail participation, although fractional ownership options exist on some trading platforms. By cutting the price per share, Naspers aims to broaden its investor base and improve liquidity.

For Naspers, which has long struggled with a persistent valuation discount relative to its assets, it could improve optics. The decision follows a trend particularly in the US, where high-profile technology firms such as Apple and Tesla have carried out stock splits to increase retail investor participation.

Naspers’ restructuring efforts in recent years, including share swaps and buybacks, have sought to unlock value for shareholders with limited success. News24 quoted market commentators describing the move as a “nice gesture, but not material” in terms of closing the gap between Naspers’ share price and its underlying asset value. Only structural solutions, such as further buybacks or corporate simplification, can meaningfully narrow that discount, they said.

The share split could provide tangible benefits to liquidity on the JSE. A higher volume of shares in issue at a lower price point could facilitate more active trading and potentially reduce bid-ask spreads.

Moneyweb noted that the change comes at a time when South African investors are increasingly seeking exposure to global technology companies. Naspers remains one of the largest vehicles for such exposure, given its sizeable stake in Prosus and indirect holding in Tencent.