What is a Appendix 3A.3 - Notification of Security Consolidation or Split Form

A security consolidation, also known as a reverse stock split, is when a company reduces the number of its outstanding shares by merging several shares into one. A security split, also known as a stock split, is when a company increases the number of its outstanding shares by dividing each existing share into multiple shares.

Let's say that ABC Corporation has issued 10 million ordinary shares and decides to conduct a 1-for-5 stock split, which would result in 50 million ordinary shares outstanding. The company must complete and submit the Appendix 3A.3 form to the ASX to notify the market of the stock split.

Once the Appendix 3A.3 form is submitted and approved by the ASX, the stock split would take effect, and the company's shares would be adjusted accordingly. For example, if an investor held 1000 shares of ABC Corporation before the stock split, they would now hold 5000 shares after the split, but the total value of their investment would remain the same.