The AMP Ltd (ASX: AMP) share price has edged lower at the end of trade on Friday, closing 1% lower at 99 cents.
This follows a recent announcement from the financial services company on its plans to establish an attractive option for its shareholder base.
What did AMP announce?
In a statement to the ASX, AMP advised it has launched a small shareholding sale facility for its shareholders.
The company said it recognised that many of its 700,000 shareholders held AMP shares valued at $500 or less.
The sale facility allows eligible AMP shareholders to offload their small holdings without incurring brokerage costs. However, this only applies to those holding between 1 and 442 AMP shares on the record date of 27 August. The AMP share price closed at $1.13 on that day (442 AMP shares x $1.13 = $499.46).
It’s worth noting that the sale price will be the average price of every share sold on the ASX under the sale facility. This means that all shareholders will receive the same price per share.
The sale facility will run from 20 September to 8 November 2021. The company said the estimated date for payment of sale proceeds was 10 December 2021.
AMP noted that the sale facility would reduce administration and registry costs associated with servicing small shareholdings.
It will issue sale statements via email or post on 13 December 2021.
Shareholders who do not wish to participate in the sale facility need not do anything.
AMP share price snapshot
AMP shares have fallen around 30% over the past 12 months, with the majority of losses coming in 2021. When looking over a 5-year time frame, the AMP share price is down a mammoth 80%.