Lombard Bank is to ask its shareholders to approve a 2-for-1 share split as it looks to attract new investors by issuing new shares.

The bank spelled out that intention in a statement to the market issued on Tuesday.

Directors are recommending that each €0.25 share be split into two, each with a nominal value of €0.125.

“The proposed share split, which is subject to regulatory approval, is intended to allow easier access to a larger number of investors which should result in improved trading liquidity in the Bank’s shares,” the bank said in its statement.

Shareholders will vote on the bank's plan at an Extraordinary General Meeting scheduled to take place on November 10. 

Lombard had announced its intention to  tap the local capital market and issue new shares last September, saying at the time that a new three-year strategy for the bank had identified “attractive market opportunities which are within its prudent risk parameters.”

Lombard Bank is 49 per cent owned by the National Development and Social Fund – a state-run fund that collects money accrued from the sale of Maltese citizenship – with the remaining 51% owned by various other shareholders.

Lombard Bank owns a majority shareholding in MaltaPost plc, the national postal operator, while the balance of the shares are held by the public.

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