Massy plans 20-way share split, JSE listing pending
Published:Friday | December 31, 2021 | 12:08 AM
Shareholders of Massy Holdings will vote on whether to split the company’s stock into 20 for every share held, at their next annual general meeting set for January 21.
At its current trading price above TT$109 and market value of TT$10.8 billion, a 20-way split would reset the share price at TT$5.46 but leave the market value unchanged, as the split would grow the number of shares in issue from around 98.97 million to 1.98 billion units.
The value of the holdings of individual investors would not change, even though they will own more units.
Massy Holdings, in operation since 1923, is a large conglomerate with diversified interests and businesses spanning the Caribbean, including Jamaica.
In May of this year, the board of the Trinidad & Tobago-based company decided to cross-list the stock on the Jamaica Stock Stock Exchange, the most robust of all the Caribbean stock exchanges.
“The board considered the market sophistication and growth opportunities evident in the Jamaican securities market, which has become increasingly more dynamic over the past few years,” Massy said in a market filing on the Trinidad exchange at the time.
The timeline for the cross-listing was not disclosed.
Massy Holding’ revenue topped TT$11 billion at year ending September 2021, from which it earned pre-tax profit of TT$929 million, up 29 per cent over 2020. Earnings per share rose 13 per cent from TT$7.11 to TT$8.02.
“We continue to deliver enhanced value to our shareholders as total return to shareholders has been excellent for the past few years, return on equity is improving, and our upcoming cross-listing in Jamaica in 2022 will increase trading activity, expand the base of shareholders, and give international investors better access to hard currency from their trades,” Massy said in notes accompanying its financials.
The company’s stock price is up 79 per cent year to date on Thursday on the Trinidad market.