BMW's Centenary Restructuring: Preference Shares Abolished as iX5 Debut Fails to Lift Stock From 2025 Low
30.06.2026 - 16:07:29 | boerse-global.de
The Munich automaker is celebrating a century on the stock exchange with a radical overhaul of its capital structure — but the share price refuses to join the party. BMW today completed the conversion of its preference shares into common stock, a move designed to simplify its equity base for international investors, even as the stock touched a fresh 2025 low of €57.06. The historic step coincides with the world premiere of the fifth-generation X5, including the heaviest production model in the company's history: the all-electric iX5.
The transformation, which took effect after the commercial register confirmed the amended articles of association, eliminates roughly 54.6 million non-voting preference shares and converts them into voting common stock. Effective from 1 July, only a single class of shares will trade, boosting the free float of BMW common stock by approximately 19%. The company's equity capital of around €616 million now consists entirely of ordinary shares, with the new instruments carrying full dividend rights retroactive to the start of the year. Banks are expected to complete the depot adjustments in the first week of July.
Across the showroom floor, BMW positioned the new X5 as a bridge model until the "Neue Klasse" platform arrives in mid-2026. The iX5 60 xDrive leads the electric offensive with a 425 kW powertrain based on the sixth-generation eDrive system and an 800-volt architecture for faster charging. Its net battery capacity in European specification reaches 141 kWh, while the vehicle's curb weight exceeds 2,800 kilograms — an internal record for a series-production BMW. The model also debuts the "Heart of Joy" control module, a central computer that integrates drivetrain, suspension, brakes and steering and is claimed to operate ten times faster than previous systems. Roughly a third of the vehicle's weight comes from secondary raw materials.
Should investors sell immediately? Or is it worth buying BMW?
BMW will offer the new X5 with five powertrains from launch: petrol, diesel, plug-in hybrid, full battery-electric, and — from 2028 — a hydrogen fuel cell variant. Series production for Europe is scheduled to begin in the second half of this year, while the Munich plant readies itself for the ramp-up of the "Neue Klasse."
Despite the twin events — a landmark structural reform and a major product premiere — the market response has been decidedly cool. The stock slipped another 1% on the day to close at €57.30, after hitting an intraday low of €57.06. Since the start of the year the shares have shed roughly 40% of their value, leaving them nearly 41% below the December high. The Relative Strength Index has plunged to 18.4, deep into oversold territory. The distance to the 200-day moving average has also stretched to an unusually wide 31%.
Some analysts remain undeterred by the selloff. Several have reiterated buy recommendations with price targets around €85, arguing that the technical oversold signal could spark a recovery. The increased liquidity from the share restructuring should also make the stock more attractive to institutional investors, the company contends. Yet the bearish chart pattern remains fragile: if support around the day's low fails to hold, further declines cannot be ruled out.
BMW is banking on the new X5 to shore up cash flows while it awaits the next-generation electric architecture. The company has maintained its dividend payout ratio of 30% to 40% despite lowering its EBIT margin guidance in June. Whether today's historic overhaul — executed on the 100th anniversary of the company's stock market listing — will ultimately be remembered as a turning point depends on whether the market's deep pessimism proves overdone. For now, the fundamentals remain under pressure, and the stock is still searching for a floor.
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