The Scrip Reference Price
The Scrip dividend reference price was used to calculate how many shares would be paid to shareholders if they had elected to receive their dividend in the form of shares instead of cash. The number of shares due to be paid was calculated by dividing the total cash dividend due on each shareholding by the Scrip dividend reference price. The Scrip dividend reference price was calculated as the average of the middle market quotations for Prudential’s ordinary shares as derived from the Daily Official List of the London Stock Exchange for the five business days commencing on the ex-dividend date. No Scrip dividend was offered in November 1997 or May 1998.
The Dividend Re-investment Plan ('the DRIP')
†On 26 May 2010, the Company changed from a Scrip dividend to a Dividend Re-investment Plan ('the DRIP'). Under the DRIP, shares are purchased in the market using the cash dividends that would otherwise have been paid to shareholders. The purchased shares are then distributed to each electing shareholder in proportion to the amount of their cash dividend receivable. The price paid for the shares will only be known after all the shares have been purchased. The DRIP price shown above excludes 0.5% stamp duty and commission costs (currently 0.75%), which will be indicated on shareholder purchase statements sent to shareholders at the time of dividend payments.