Sterling's stock split takes effect Nov 27Thursday, November 15, 2018
Sterling Investments Limited (SIL), an investment holding company managed by Sterling Asset Management, has announced that the record date of the 5:1 stock split previously announced is November 27, 2018.
The split was approved by SIL's shareholders at the Extraordinary General Meeting (EGM) held on October 8, and the company has since submitted the relevant information to the Jamaica Stock Exchange.
In a stock split, the number of shares is increased while the underlying value of the total shares remains the same. This means that as of the record date, holders of ordinary shares/stock units in Sterling Investments will see each existing share converted to five shares.
As indicated by Chairman Derek Jones, at the EGM, the split is aimed at increasing the liquidity of the stock, thereby allowing potential purchasers greater access to the shares, and allowing existing shareholders to trade their shares with greater ease.
The most recent results showed that the company's fundamentals remain strong, with gross revenue for the period hitting $133.9 million for the nine months ended September 2018, an increase of 43.6 per cent over the $93.2 million recorded in the corresponding period in 2017. Similarly, after-tax profits showed a 53.2 per cent increase over the corresponding period in 2017, moving from $59.0 million to $90.4 million for the nine months ended September 2018.
Details of the upcoming rights issue will be announced shortly.
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