The Coca-Cola Co. is seeking its first stock split in 16 years.
The world's biggest beverage maker said on Wednesday the 2-for-1 split is in line with its plan to double revenue over this decade. The Atlanta-based company's stock began trading in 1919. Since then, the stock has been split only 10 other times.
Companies split stocks when they think their share price has gotten too expensive or if the stock is trading too far above similar companies' stock.
If approved, Coke's split would increase the number of its shares to 11.2 billion from 5.6 billion. Shareholders would receive one additional share of stock for each share held in early August.
The move is subject to approval by shareowners on July 10. Coca-Cola, which has more than 500 brands including Sprite, Minute Maid, Dasani and Powerade, last week reported another strong first-quarter performance that topped Wall Street expectations. The company attributed the results to increased sales at home and abroad, but noted that the biggest gains came from emerging markets like China and India. Another aspect of Coca-Cola's success in recent years has been its ability to deftly manage rising commodity costs.