For the first time since going public in 2002, consumer debt purchasing specialist Portfolio Recovery Associates (PRAA -5.62%) announced today it is going to split its stock and will do so by a three-for-one ratio.
The board of directors said shareholders will receive two additional shares of Portfolio Recovery stock for every one they hold at the close of business on July 1. The additional shares will then be distributed Aug. 1. The market price of each share will adjust to the split and individual investors will end up owning roughly the same dollar amount of stock after the split as they owned before it.
Stating his belief the stock split will make shares more attractive to a broader range of potential investors, while at the same time increasing their liquidity, Portfolio Recovery Associates CEO Steve Fredrickson said: "PRA experienced strong financial results in the first quarter of 2013, following record growth in 2012. As we continue to buy a growing amount of unsecured and secured consumer debt, while better connecting with a growing number of customers ready to pay down their debt, PRA is poised to sustain growth in the years ahead."
Headquartered in Norfolk, Va., Portfolio Recovery has approximately 16.9 million shares outstanding. It's stock has more than doubled in value over the past year and shares were trading as of this writing at $152.66.
