Under Armour (UA) unveiled plans on Monday for a two-for-one stock split later this summer in an effort to broaden the athletic wear company’s investor base.

Red-hot shares of Baltimore-based Under Armour rose more than 1% to eclipse $104 in premarket action in the wake of the announcement, which marks the company’s first stock split since going public in November 2005.

Under Armour said the stock split will take place in the form of a dividend of one share of Class A common stock for each one outstanding and the same for Class B shares.

The company said the stock split will be distributed around July 9 to shareholders of record on June 25.

"We are proud of the value we have delivered to our stockholders over the long-term, and we believe this stock split may broaden our investor base and improve the trading liquidity of our stock,” CEO Kevin Plank said in a statement.

The stock split could also pave the way for Under Armour’s entrance into the S&P 500, Dow Jones Newswires pointed out. With a market cap north of $5 billion and annual revenue of about $1.5 billion, Under Armour would seemingly fit right into the broad index.

Shares of Under Armour, which have surged 44% so far this year, were recently up 1.39% to $104.75.  

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