Revlon Inc. on Tuesday effected a 1-for-10 reverse stock split that cuts the number of its Class A and Class B shares by 90 percent and will make it easier for the beauty firm to comply with New York Stock Exchange minimum price standards. With the split, the number of Class A outstanding shares has been cut to about 48.2 million from 481.9 million and those in Class B to about 3.1 million from 31.3 million.
This story first appeared in the September 17, 2008 issue of WWD. Subscribe Today.
The plan was approved by Revlon’s board and its principal owner, MacAndrew & Forbes, owned by Revlon chairman Ronald Perelman, in April. At the time, Revlon president and chief executive officer David Kennedy said the move would make the stock “more attractive to a broader range of institutional and other investors” and satisfy the NYSE’s requirement that its share price not fall below $1 for 30 consecutive trading days. Prior to the split, Revlon’s Class A shares had ranged from a high of $1.45 on Sept. 2 to a low of 67 cents on July 16. On Tuesday, following the split, they opened at $10.51 and closed at $12.95, up 22.8 percent, in NYSE trading.