ABRDN AUSTRALIA EQUITY FUND, INC. ANNOUNCES DETAILS OF UPCOMING 1-FOR-3 REVERSE STOCK SPLIT

PHILADELPHIA, Oct. 8, 2025 /PRNewswire/ -- abrdn Australia Equity Fund, Inc. (NYSE American: IAF) (the "Fund"), a closed-end fund, announced today that the Fund's Board of Directors approved a 1-for-3 reverse stock split of the Fund's common stock.

The Fund anticipates completing a 1-for-3 reverse stock split prior to the open of trading on the New York Stock Exchange (the "NYSE") on October 23, 2025. Trading in shares of the Fund's common stock on a split-adjusted basis is expected to begin at the open of trading on the NYSE on October 23, 2025. Shares of the Fund's common stock will continue trading on the NYSE American under its existing ticker symbol (NYSE American: IAF) but will be assigned the new CUSIP number below.

As a result of the reverse stock split, every three shares of the Fund's outstanding common stock will be converted into one share of common stock. A reverse stock split will decrease the number of the Fund's shares of common stock outstanding and potentially increase the market price per share of common stock by a proportional amount. While the number of the Fund's outstanding shares of common stock will decline, neither the Fund's portfolio holdings nor the total value of stockholders' investments in the Fund will be affected as a result of the reverse stock split. After the reverse stock split, common stockholders' accounts will reflect proportionally fewer shares of common stock with a higher net asset value per share of common stock and each common stockholder will hold the same percentage of the Fund's outstanding shares of common stock as such stockholder held immediately prior to the reverse stock split, subject to adjustments for fractional shares resulting from the reverse stock split (discussed below).

The reverse stock distribution does not alter the Fund's commitment to its current policy of paying quarterly distributions at an annual rate of 10% of the rolling average of the Fund's NAV over the preceding three-month period ending on the last day of the month immediately preceding the month of the Fund's declaration date. The percentage of NAV used to calculate distributions remains unchanged. However, shareholders may observe a higher per-share distribution amount post-split, consistent with the reduced share count.

The Board of Directors and Aberdeen believe that increasing the market price per share of the Fund's common stock through the reverse stock split may broaden the range of potential investors in shares of the Fund's common stock, thereby potentially improving the market for, and liquidity of, shares of the Fund's common stock. This would have the effect of reducing the per share transaction costs associated with buying or selling shares of the Fund's common stock in the secondary market.

No fractional shares will be issued as a result of the reverse stock split. Fractional shares that may result from the reverse stock split will be aggregated and sold on the NYSE by the Fund's transfer agent and the proceeds will be distributed pro rata among stockholders who would otherwise have received fractional shares in the reverse stock split. The pro rata cash payment received by stockholders will be net of any customary fees and expenses in proportion to their allocable share of the total proceeds of the sales. Stockholders will be receiving additional information regarding the reverse stock split from Computershare Trust Company, N.A., the Fund's transfer agent.

In the United States, Aberdeen Investments Global is the trade name of Aberdeen's investments business, herein referred to as "Aberdeen Investments" or "Aberdeen". In the United States, Aberdeen Investments refers to the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.

The value at which a closed-end fund stock may trade on a public exchange is a function of external market factors that are not at the control of the Fund's Board or Investment Advisor. Closed-end Fund shares may therefore trade at a premium or a discount to net asset value at any given time. Shareholders should be aware that a fund trading at a premium to net asset value may not be sustainable and a fund's discount to net asset value, can widen as well as narrow. Shareholders of a fund trading at a premium who participate in that fund's dividend reinvestment plan should note the reinvestment of distributions may occur at a premium to net asset value. 

Closed-end funds are traded on the secondary market through one of the stock exchanges. A fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that the Fund will achieve its investment objective. Past performance does not guarantee future results.

abrdn Australia Equity Fund, Inc. | Aberdeen

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