National Grid Announces Admission of 50.9 Million Shares for 2025/26 Final Scrip Dividend

Overview of National Grid’s Scrip Dividend Scheme and Shareholder Participation

National Grid plc’s Scrip Dividend Scheme enables eligible shareholders to reinvest dividends into newly issued ordinary shares instead of receiving cash payments. This alternative dividend option offers shareholders flexibility while allowing the company to manage its capital structure efficiently. The scheme caters to diverse investor preferences and tax situations by providing a choice in dividend receipt.

For the 2025/26 final dividend, the scheme involves issuing a significant volume of new shares. It operates with distinct pricing for UK shareholders and ADR holders, reflecting National Grid’s dual listing and the need to accommodate currency differences and regulatory requirements across markets. This dual-currency pricing approach underscores the company’s commitment to serving its global shareholder base effectively.

Issuance of 49.8 Million Shares to UK Shareholders at 1,197.70 Pence Each

The largest portion of the scrip dividend involves issuing 49,766,614 ordinary shares to UK shareholders at a fixed price of 1,197.70 pence per share. This constitutes the majority of the total 50.9 million shares being admitted to the London Stock Exchange under the scheme. The pricing follows the established terms approved by shareholders and is regularly reviewed to maintain fairness and transparency.

The substantial share volume reflects strong uptake of the scrip dividend option among UK investors, who benefit from potential capital growth while contributing to the company’s equity base. The fixed price provides certainty for participants and allows National Grid to issue a predetermined number of shares based on dividend entitlements and reference share prices.

219,257 ADRs Issued to US Investors at US$80.5453 Per Receipt

For US shareholders holding National Grid shares via American Depositary Receipts, 219,257 ADRs will be issued at US$80.5453 each, representing 1,096,285 ordinary shares including fractional entitlements. This separate pricing mechanism addresses currency differences and ensures equitable value for American investors.

This US dollar pricing reflects the complexities of managing a dual-listed utility company’s share issuance across jurisdictions. It guarantees ADR holders receive equivalent economic value compared to UK shareholders, adjusted for exchange rates and share price calculations. The inclusion of fractional entitlements highlights the company’s precision in share allocation.

Regulatory Approvals for London Stock Exchange Trading and Official List Admission

National Grid has confirmed that applications have been made to the Financial Conduct Authority for admission of the shares to the Official List and to the London Stock Exchange for trading approval. These are standard regulatory steps required for issuing new equity under the Scrip Dividend Scheme. FCA approval ensures compliance with UK listing regulations.

The company expects trading in the new shares to commence on 23 July 2026, coinciding with the dividend payment date. This coordination between National Grid, the exchange, and its share registry facilitates smooth implementation and provides clear timing for shareholders and market participants.

New Shares to Rank Pari Passu with Existing Ordinary Shares

The announcement confirms that the newly issued shares will rank pari passu with existing National Grid ordinary shares, meaning they will carry identical rights, including voting, dividend participation, and entitlement in corporate actions. This ensures equitable treatment of all shareholders regardless of when shares were acquired.

Pari passu status reassures investors that shares received via the scrip dividend scheme have the same economic and governance rights as existing shares, maintaining a uniform shareholder class without creating different share tiers.

Dividend Payment and Share Trading to Commence on 23 July 2026

The 2025/26 final dividend payment date is set for 23 July 2026, which aligns with the expected start of trading for the new scrip dividend shares on the London Stock Exchange. This simultaneous timing ensures shareholders opting for shares receive their allocation on the same day as cash dividend recipients.

This synchronized approach simplifies administration and guarantees equal treatment in distribution timing. It also provides shareholders with advance notice to plan their investment decisions regarding the newly issued shares.

National Grid’s Role as a Leading Regulated Utility

National Grid plc operates critical gas and electricity transmission and distribution networks across Great Britain and parts of the northeastern United States. The company is regulated by Ofgem in the UK and state regulators in the US, reflecting its role in essential energy infrastructure. Its regulated asset base generates stable cash flows that support consistent dividend payments.

The company’s dividend policy aligns with the predictable earnings and capital investment needs typical of regulated utilities. The Scrip Dividend Scheme offers shareholders a way to participate in capital growth while providing National Grid flexibility in managing its equity capital. The large scale of the 2025/26 scrip dividend issuance indicates strong shareholder confidence and preference for capital accumulation.

Shareholder Resources and Scheme Documentation

National Grid makes the current Scrip Dividend Scheme terms and conditions available on its Investors website, offering comprehensive details on participation rights and procedures. This transparency enables shareholders to make informed decisions about reinvesting dividends.

For additional support, Equiniti administers the scheme and can be contacted by phone at 0800 169 7775 or online at help.shareview.co.uk, providing shareholders with multiple channels for assistance.

Capital Management Strategy Using Scrip Dividends

National Grid’s Scrip Dividend Scheme is part of a broader capital management strategy within the regulated utility sector. By allowing dividend reinvestment, the company can strengthen its equity base and reduce reliance on external equity issuance for capital investments.

For shareholders, participating in the scrip scheme offers exposure to company growth without incurring transaction costs associated with market purchases. The significant uptake of the 2025/26 scrip dividend reflects investor confidence in National Grid’s regulatory environment and inflation-hedged cash flows, supporting efficient financing of ongoing infrastructure investments.