Ride Inc. announced a two-for-one stock split in early August putting the public offering of two-million shares of common stock at a price of 17 dollars per share. Of the total, 1,165,400 shares were offered by the company and 834,000 were offered by selling stockholders.
According to Deven Perschke, investor relations for Ride, the split was intended to help stabilize the company by making shares more affordable and encouraging more investors.
“We’ve had fathers call us up after their son has told them about us looking to invest money,” Perschke explained. “Also, kids want to invest. When it’s at 35 bucks a share, it’s not as tantalizing as it is when shares are sixteen or seventeen dollars.”
Tom Blake, vice president and broker of Spencer Trask Securities in New York, says that stock splitting is common for companies. Especially companies like Ride whose target market is between the ages of twelve and 24.
“It doesn’t change things much for Ride,” Blake says. “Splitting stocks just makes it more affordable for people to buy shares.”
Ride’s net proceeds will be used for working capital, general corporate purposes and potential acquisitions.