I believe the market will determine the new price - buyer and seller agreeing on some value/per share. This is the difference between this distribution being a dividend vs being a forward split. A forward split would automatically reduce the pps by holding the market cap constant and then calculating the pps from the new number of outstanding shares. A dividend will not automatically change the price; the market demand/supply will create a new price. Theoretically, if there is great news released prior to market opening, the pps could jump to $50 (or any other number) if that is what the demand/supply dictates for the first trade.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.