Dec. 1 at 11:50 PM
$SVUHF ✅ 3. No increase in authorized shares → no change in potential dilution
Reducing par value without changing authorized shares means:
The company is not creating more shares.
Shareholders do not face dilution.
Voting power and ownership percentages remain exactly the same.
Why would a company do this?
Common reasons
Legal flexibility
Some jurisdictions require certain ratios of stated capital; lowering par value frees capital from legal restriction.
Simplifying future actions
Lower par value makes stock splits, stock buybacks, or re-capitalizations easier.
Cleaning up the balance sheet
Reduces restricted equity and increases APIC, which is often less restricted.
Preparing for accounting compliance
Especially when moving between jurisdictions or adjusting to new corporate regulations.
What it does not mean
It does not change the real economic value of the shares.
It does not change the company’s total equity.
It does not dilute shareholders (because authorized shares aren’t rising).
