HomeBusiness DigestPowerspeed proposes share split

Powerspeed proposes share split

Shakeman Mugari

ELECTRICAL group Powerspeed Ltd says it will have a 10 for one share split to increase the liquidity of the company’s share on the Zimbabwe Stock Exchange.

Managing director Hilton Macklin said the move would enhance shareholder value and increase group shares in circulation.

“We are hoping the shares will be more tradable on the market,” he said. “The share will also become affordable. The primary concern of the group is to increase liquidity of the shares.”

Macklin said the share split would increase market capitalisation and uplift interest from large financial institutions.

“With less shares on the market, Powerspeed has not enticed much interest from large financial institutions. Introduction of more shares on the market will encourage pension funds and other financial institutions to invest in the company.”

The share split will increase the authorised share capital from 50 million ordinary shares of a nominal value of 50 cents per share to 500 million ordinary shares of a nominal value of 5 cents per share.

Existing shareholders will receive nine additional shares for each Powerspeed share held.

“We are hoping the company shares will drop by a factor of below 10 but that is only our perspective. We don’t know what the market will say,” he said.

Macklin said sales for the current trading period were well ahead of target and the stock levels satisfactory.

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