YPF Stock Price Plummets on Screens After Implementing Share Split

YPF, Argentina's state-owned oil giant, has dramatically increased the accessibility of its shares through a stock split, dividing each existing ordinary share into ten. This strategic move, known as a "split" in financial markets, aims to lower the individual share price, thereby opening the door to a broader universe of investors, particularly small savers.

The ratio has changed to 1:10, meaning that for every share an investor held, they now have ten. This has led to a significant apparent drop in the stock's price on trading screens, falling from $82,900 pesos at Friday's close to approximately $8,155 pesos. While shareholders now possess more individual papers, the total value of their holdings remains the same, barring market fluctuations during the process.

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We want more and more Argentines to be part of YPF's growth. The stock split is a concrete step to bring the capital markets closer and make investment in the company more accessible.

Horacio Marín, YPF's president and CEO, emphasized the company's commitment to broader participation. "We want more and more Argentines to be part of YPF's growth. The stock split is a concrete step to bring the capital markets closer and make investment in the company more accessible," he stated. This initiative aligns with YPF's broader digital strategy, which includes plans to allow users to purchase YPF shares directly through the company's mobile application, potentially for the price of a coffee.

Marín clarified that the split is not intended to artificially inflate the stock's market value but rather to democratize investment and potentially combat scams. He noted that YPF's share price had become exceptionally high compared to other Argentine energy companies like Vista and Pampa Energía, making it an outlier in the local market. This adjustment brings YPF's share price more in line with its peers, fostering greater liquidity and simplifying access for a wider range of investors.

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We want with this that the scams being done in my name, with my face, go down. There is no other leitmotif than that. Besides, we saw that it was the only stock in Argentina that was worth so much compared to other energy companies, like Vista or Pampa. We are updating ourselves to that.