Permanent TSB plans to cut the number of shares in issue next month before raising €525 million in new capital from external investors.

The company wants to consolidate the number of shares in issue from the current unwieldy 36.5 billion to 365 million. Each shareholder will receive one share for every 100 they hold.

In a circular to shareholders, the company said this would benefit the “marketability” of the shares, which would no longer trade in the “so-called ‘penny stock’ range”.

PTSB’s shares currently trade on the junior ESM market in Dublin at 6.9 cent each.

The circular stated that a “higher price-per-share range would be more appropriate” for when the capital raising is completed.

PTSB will seek approval from shareholders for this reorganisation at its annual meeting on April 8th in Dublin.