Scrip dividend

A summary timetable for the 2024 first interim dividend is as follows with key deadlines for shareholders highlighted below

For more detailed timetable please refer to the Scrip Dividend Circular.

The price used to calculate the number of new shares receivable under the scrip dividend scheme is: the average middle-market price of the Company’s shares on the London Stock Exchange over a five-day dealing period commencing on the Ex-Dividend Date and converted to US Dollars using mid-point WMR spot exchange rates quoted by Bloomberg in London at or around 11:00 a.m. on the last day of such period. This price is called the “Scrip Reference Price”. The Scrip Reference Price for the 2024 first interim dividend was announced on 12 September 2024. The Scrip Reference Price is then used to determine the number of new shares to which an eligible shareholder is entitled.

The entitlement to new shares for each individual eligible shareholder is their individual maximum dividend payable in USD. This is shown below:

Then the maximum number of shares is determined using the following formula

Prudential’s Evergreen Scrip Dividend Scheme allows eligible shareholders to elect to receive their dividend in the form of new shares in the Company instead of cash dividends.

These new shares will be issued on the Hong Kong branch register and available for trading on the Hong Kong Stock Exchange. Applications are being made to (i) the Financial Conduct Authority (FCA) and the LSE to facilitate any subsequent transfer of new shares to the United Kingdom register; and (ii) SGX to facilitate the listing of new shares on the SGX. Please refer to the Scrip Dividend Circular for more detailed information on the admission of new shares and for eligibility criteria to participate in the scrip dividend scheme.

Prudential’s DRIP (Dividend Reinvestment Plan) offers UK Register Shareholders the option to reinvest their dividends by acquiring existing shares of the Company on the London Stock Exchange. For further information please refer to our DRIP page.

Under the DRIP, shares are purchased in the market on the UK line using the cash dividends that would otherwise have been paid to shareholders. The purchased shares are then distributed to each electing shareholder. The DRIP is administered in the UK only by our registrars, Computershare Investor Services PLC, and not by the Company. 

If you elect for the Scrip dividend, this instruction will supersede the DRIP election for subsequent dividends unless you notify the registrars of the change in preference. 

What do I need to know before participating?
In order to receive new shares instead of a cash dividend, any UK Register Shareholder who elects to participate in the scrip dividend scheme needs to provide either (i) an address in Hong Kong or (ii) the details of a Hong Kong qualifying brokerage account. This is because the new shares are being issued on the Hong Kong share register, where a Hong Kong address or brokerage account is required.

If you do not provide a Hong Kong address or qualifying Hong Kong brokerage account, you may still elect to participate in the scrip dividend scheme but you will not be issued any new shares. Instead, the Company will arrange for the new shares to which you are entitled to be sold on your behalf via the Dealing Facility and as such you would be considered as a “Dealing Facility Shareholder”.

Note: The Dealing Facility is not available to Hong Kong Register shareholders and Singapore shareholders.

A Hong Kong qualifying brokerage account is a brokerage account that meets certain criteria set by the Hong Kong Securities and Futures Commission (SFC) or other regulatory bodies. These accounts are used for trading securities on the Hong Kong Stock Exchange (HKEX) and often come with specific benefits or requirements. See here for a list of qualifying Hong Kong brokers.

What do you need to do to participate?

You will need to (i) complete the applicable Mandate Form; or (ii) make a CREST election. The completed Mandate Form must be returned to, or elections received by, our registrars before the applicable Election Deadline Date.

Minimum number of shares

To qualify for participation in the scrip dividend scheme, you must also hold a minimum number of shares. This number is published on the Company’s website and is calculated by dividing the Scrip Reference Price by the dividend amount and then rounding it up to a whole share.

Example calculation of new shares allotted to Dealing Facility Shareholder and sale proceeds receivable

As an illustrative example, if you hold 1,000 ordinary shares on the Dividend Record Date, the Cash Dividend Rate was 10 US cents per share and the Scrip Reference Share Price was $9.25 per new share and you are considered a Dealing Facility Shareholder, then the following scenario is possible, with the outcome being you receive a pro rata share of the sale proceeds plus the cash balance:

Cash value of your dividend = 1,000 shares x 10 US cents = US$100

• Number of new shares = US$100 ÷ US$9.25 = 10.81, rounded down to 10 new shares
• Residual cash balance = US$100 - US$92.50 = US$7.50 and paid to shareholder in GB Pound Sterling or USD depending on elections in the past Share of the sale proceeds: 10 x the price per share achieved under the Dealing Facility less (if applicable) trading commissions, Hong Kong stamp duties or and certain Exchange Fees and Levies.
• Converted using the prevailing exchange rate.

Note: The price per share achieved under the Dealing Facility may be higher or lower than the Scrip Reference Price of US$9.25 due to market movements.

If the Dealing Facility is to apply to my election, what are the Dealing Facility terms and costs?

Trading commissions

Dealing Facility Shareholders, or holders using a nominee, who, per share account, have made an election for Scrip dividend have made a scrip dividend election in respect of fewer than 50,000 ordinary shares on the Record Date (“Small Shareholders”) will not be charged any trading commissions in relation to the Dealing Facility.

Dealing Facility Shareholders other than the Small Shareholders (“Large Shareholders”) will be charged trading commissions (0.60 per cent.) in respect of the sale of the new shares to which they are entitled via the Dealing Facility. Such amounts will be deducted from the amount to be paid to the relevant Dealing Facility Shareholder

Hong Kong Stamp duty and Exchange Fees and Levies

All Dealing Facility Shareholders will bear the costs of any Hong Kong stamp duty (0.10 per cent.) and Exchange Fees and Levies (comprising a Securities and Futures Commission of Hong Kong transaction levy of 0.0027 per cent., an Accounting and Financial Reporting Council transaction levy of 0.00015 per cent. and a HKEX trading fee of 0.00565 per cent.) in respect of the sale of the new shares to which they are entitled, and such amount will be deducted from the amount payable to them.

For more information on the Dealing Facility, please see the question below – 12. What is a dealing facility?

What do you need to do to participate?

You may participate if you are a Hong Kong Shareholder, or a UK shareholder with a Hong Kong address or with a Hong Kong qualifying brokerage account.

In order to elect for the scrip dividend scheme and receive new shares instead of a cash dividend, you will need to:

• if you are a Hong Kong Register Shareholder or a UK Register Shareholder holding shares in certificated form, complete the applicable Mandate Form;
• if you are a UK Register Shareholder holding shares through CREST, make a CREST election; or
• if you are a Hong Kong Register Shareholder holding through CCASS, make an election through your intermediary / CCASS.

The completed Mandate Form must be returned to, and elections must be received by, our registrars before the applicable Election Deadline Date.

Please note that if you are a UK Register Shareholder and hold your shares via CREST, you will also need to complete the Mandate Form (either mailed to you or available for download at: www.prudentialplc.com/en/investors/shareholder-information/dividend/scrip-dividend to provide an address in Hong Kong or details of a Hong Kong qualifying brokerage account). This is so that you can provide an address in Hong Kong or a Hong Kong qualifying brokerage account (if you have one) in order to receive new scrip dividend shares instead of a cash dividend.

A Hong Kong qualifying brokerage account is a brokerage account that meets certain criteria set by the Hong Kong Securities and Futures Commission (SFC) or other regulatory bodies. These accounts are used for trading securities on the Hong Kong Stock Exchange (HKEX) and often come with specific benefits or requirements. See here for a list of qualifying Hong Kong brokers.

Example calculation of number and value of shares you will receive

As an illustrative example, if you hold 1,000 ordinary shares on the Dividend Record Date, the Cash Dividend Rate was 10 US cents per share and the Scrip Reference Share Price was $9.25 per new share, then the following scenario is possible, with the outcome being you receive 10 shares plus the cash balance:

• Cash value of the dividend = 1,000 shares x 10 US cents = US$100
• Number of new shares = US$100 ÷ US$9.25 = 10.81, rounded down to 10 new shares
• Value of new shares = 10 x US$9.25 = US$92.50
• Residual cash balance = US$100-US$92.50 = US$7.50

Minimum number of shares

• To qualify for participation in whole shares, you must also hold a minimum number of shares. This number is published on the Company’s website and is calculated by dividing the Scrip Reference Price by the Dividend and then rounding it up to a whole share

Evergreen nature of the scrip dividend scheme

If you (other than a shareholder holding shares through CREST or an intermediary/CCASS) submit a Mandate Form, you will still have your election captured so as to participate in all future dividends in relation to which a scrip dividend alternative is offered and for which you are eligible to do participate, unless and until you inform us otherwise. If you are a shareholder holding shares through CREST or your intermediary/CCASS, you will need to complete an election for each scrip dividend for which you are eligible and your past elections will not be captured.

Note:

If you are a Hong Kong shareholder, you cannot participate in the Dealing Facility. If you are UK shareholder with a Hong Kong address or Hong Kong qualifying brokerage account, and want to participate in the share dealing scheme, please do not provide the HK address or Hong Kong qualifying brokerage account on the Election form. Note that the issuance may be in “odd lot” size which may incur greater dealing costs to deal in that size that an issuance in larger size. See HKEX website for further rules.

Yes, Singapore shareholders, whether holding directly (i.e. a Singapore Depositor) or via a Singapore Depository Agent are eligible to participate in the scrip dividend scheme alternative.

Shareholders who are Singapore Depositors may elect to participate in the scrip dividend scheme to receive the full dividend value in shares for the relevant dividend only or may elect to provide standing instructions to receive the full dividend value in shares for the Dividend and all future dividends where a scrip dividend alternative is offered. The latter election is called a ‘Permanent Election’.

Shares held through a Singapore Depository Agent are not eligible for a Permanent Election, and an election will need to be completed for each future dividend where a scrip dividend alternative is offered.

Elections made by Singapore Depositors or by Singapore Depository Agents on behalf of their sub-account holders must be made by the applicable Election Deadline Date.

Example calculation of number and value of shares you will receive

As an illustrative example, if you hold 1,000 ordinary shares on the Dividend Record Date, the Cash Dividend Rate was 10 US cents per share and the Scrip Reference Share Price was $9.25 per new share, then the following scenario is possible, with the outcome being you receive 10 shares plus the cash balance:

• Cash value of the dividend = 1,000 shares x 10 US cents = US$100
• Number of new shares = US$100 ÷ US$9.25 = 10.81, rounded down to 10 new shares
• Value of new shares = 10 x US$9.25 = US$92.50
• Cash balance = US$100-US$92.50 = US$7.50, converted to Singapore Dollars at the prevailing market rate.

Minimum number of shares

To qualify for participation, you must also hold a minimum number of shares. This number is published on the Company’s website and is calculated by dividing the Scrip Reference Price by the dividend amount and then rounding it up to a whole share.

Note: If you are a Singapore Shareholder, you cannot participate in the Dealing Facility.

If you are a UK Register Shareholder and have a prior DRIP mandate in place you may make an election to participate in the scrip dividend alternative. Please refer to the questions above which set out how you may participate in the scheme. 

If you elect to participate in the scrip dividend alternative, then that will replace your current DRIP mandate. If you subsequently make an election to participate in the DRIP, then that will replace your scrip dividend election.

Yes, you may.

What do you need to do
You do not need to do anything if you don’t have a current DRIP (or scrip dividend) mandate in place.

If you currently have a DRIP mandate in place (available to UK Register shareholders) and wish to switch to a cash dividend, please contact our registrars Computershare.

For future dividends, if you wish to cancel an existing scrip mandate, please contact either our registrars, Computershare, or CDP, as applicable.

Using the same scenario as before, cash dividends will continue to be calculated and paid as in the following example:

Cash value of your dividend = 1,000 shares x 10 US cents = US$100

Payment and exchange rate

• In this case the cash amount of US$100 will be paid to you on the Dividend Payment Date (converted, if you have so elected, into sterling or Hong Kong Dollars using the exchange rate determined on the Exchange Rate Date).
• Singapore Shareholders will receive payments in Singapore Dollars at the prevailing market exchange rate.
• Holders of ADRs will receive payments in US Dollars through JPMorgan, the ADR Depositary.

Any person who is located or resident in the United States of America or is a U.S. person, or is a holder of American Depository Receipts, is not eligible to participate in the Evergreen Scrip Dividend Scheme and may receive the dividend in cash or, subject to the applicable terms and conditions, the DRIP.

The right to participate is not available to any person in any other jurisdiction outside the United Kingdom, Hong Kong and Singapore where such an offer requires compliance by the Company with any governmental or regulatory procedures or any similar formalities.

Any shareholder who is resident in any jurisdiction outside of the United Kingdom, Hong Kong and Singapore has the responsibility to make sure local governmental or regulatory procedures or formalities can be complied with before they make an election to participate in the Evergreen Scrip Dividend Scheme.

Please refer to the Terms and Conditions for further information.

We are unable to advise you on the tax consequences. Indicative guidance on the tax treatment of the scrip dividend for certain tax residents of the United Kingdom and Hong Kong is set out in Part IV “Tax Information” of the Scrip Dividend Circular. Supplemental tax information, incorporating the guidance set out in the circular, and reflecting all responses received by the Company from HM Revenue & Customs is attached here.

If you are unsure about your tax treatment and/or resident outside of the United Kingdom or Hong Kong, then we recommend that you consult a tax advisor for your local jurisdiction.

The Dealing Facility allows for participation in the scrip dividend scheme for those UK Register shareholders who do not provide an address in Hong Kong or details of a Hong Kong qualifying brokerage as the new scrip dividend shares will be issued on the Hong Kong line only. Such shareholders will not be issued the new scrip dividend shares. Instead, the Company will arrange for the new shares to which they are entitled to be sold on their behalf and the participating shareholder will receive their pro rata share of the sale proceeds (less certain deductions as applicable) for all new shares sold via the Dealing Facility.

Sales of new shares under the Dealing Facility will be carried out by The Hongkong and Shanghai Banking Corporation Limited (“HSBC”), who have been contracted by the Company and will be issued with the participating shareholder’s entitlement of new shares for these purposes. 

Each shareholder may make only one election in respect of each share account and the election must be made in respect of the total shareholding in that share account. The Company at its discretion may permit partial elections by nominee shareholders. For further information please contact our registrars.