Shares of Kite Realty Group Trust began trading Tuesday under a previously announced 1-for-4 reverse split, fetching $25 each in the late-morning session.
The share price represents a jump of 308 percent, or $18.88, from Monday’s closing.
Indianapolis-based Kite last month engineered the split to convert every four of its 332.7 million outstanding shares into a single share, causing Kite’s share price to quadruple. The total value of investors’ holdings remains the same.
The company’s stock price has languished in the $6 range over the last 18 months. Kite officials hope that the reverse split will give the stock a image makeover of sorts and lure more big-pocketed institutional investors who typically don't buy single-digit stocks.
The split reduces the number of outstanding shares to 83.2 million.