H&M will propose a stock split at its annual general meeting, whereby each of its existing shares will be divided into two new shares to dilute its share price and give its customers more opportunity invest in the retailer.

H&M said that the share split was simply because its stock price had become so high on the Swedish stock exchange. A spokesman for the Swedish young fashion chain said: “This is something we have done a number of times since 1999. It is simply because our price per share is very high compared with the rest of the Swedish stock exchange. Our customers in stores want to buy H&M shares and this will make it more convenient for them.”

H&M’s shares were priced at SEK 440.5 (£40.70) this morning.

As a result of the stock split, the number of shares in the company will increase from 97.2 million A-shares and 730.3 million B-shares to 194.4m A-shares and 1.46bn B-shares.

The board of H&M will propose the stock split at its AGM on April 29. It hopes to complete the stock split between May 20 and June 18.