NAGA’s Stock to Shrink Tenfold in Reverse Split, Closing Gap With Peers

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Global fintech firm NAGA Group has announced a 10-to-1reverse stock split. The move seeks to reposition the company’s share pricewithin a range more typical of its peers and to strengthen its standing amonginstitutional and international investors.NAGA Targets a More Balanced ValuationNAGA’s management framed the reverse stock split as apurely technical measure designed to improve perception and tradingflexibility. CEO Octavian Patrascu acknowledged that while the firmhas restructured operations and reinforced its finances over the past twoyears, its share price has not mirrored that progress."With the reverse stock split, we aim to place theshare price in a range that is more comparable to our peers, support improvedvisibility among investors whose mandates restrict investments in low-pricedstocks, and ensure a clearer basis for strategic initiatives," Patrascu said.The adjustment also seeks to make NAGA’s shares moreaccessible to institutional investors, some of whom are limited by mandatesforbidding purchases of stocks below certain price levels.The Share Consolidation Cuts NAGA’s Capital TenfoldThe reverse split, approved at the company’s AnnualGeneral Meeting in July 2025, reduces NAGA’s share capital from €232.8 millionto €23.3 million, in line with German corporate law. The number of registered shares will drop fromapproximately 232.8 million to 23.3 million. Importantly, the decrease willfully transfer to the capital reserve rather than being used to cover losses.You may also like: NAGA Joins Financial Super App Trend With Planned Year-End LaunchAccording to the company, shareholders will see thechanges reflected in their brokerage accounts starting December 16, 2025. Custodialbanks will manage the conversion process and inform investors about anyfractional holdings arising from the share consolidation.NAGA Grows Revenue in the First Half of 2025 NAGA has been expanding its offering, more recently enteringthe competitive space of fintech firms developing comprehensive “super apps”that unify banking, trading, and payment solutions under one digital ecosystem.The group maintained its growth momentum in the firsthalf of 2025, posting slight revenue gains while allocating more resources tomarketing in order to expand its user base for the company’s all-in-one“financial super app.” Its revenues of €32.2 million for the six months endedJune 30, a 2% increase from €31.6 million a year earlier. Net revenues rose 3%to €28.9 million, and EBITDA improved 8% to €3.0 million, even as marketingexpenses grew. The results build on the company’s full-year 2024 performance,when it recorded €62 million in revenue and achieved cash break-even.This article was written by Jared Kirui at www.financemagnates.com.