The Board of Directors of Honey Bun (1982) Limited are expected to meet on April 19 to consider a subdivision of shares.
CEO Michelle Chong said yesterday that the stock split which is in the planning stages is intended to improve trading activity for the company, listed on the Jamaica Stock Exchange under the symbol HONBUN.
“The purpose of the subdivision is to have more shares available for trading so as to improve liquidity.
“At present there are no plans for any rights issue. The company has adequate internal resources for funding of its existing projects and does not require any additional funding at this time,” Chong stated.
She did not indicate the ratio being considered for the split.
Honeybun, listed on the Junior Market of the Jamaica Stock Exchange, has 94,253,390 share units in issue with market value of $1.16 billion.
Share price closed at $12.50 on April 14, an improvement of approximately half of one per cent (0.41 per cent) year over year. Prices hit the $17 mark in February after year-end results were published, but have since returned to the mean.
The company, which increased profits by 213 per cent during the year ended December 2015, has announced plans to increase production capacity via expansion of its factory space in Kingston.
It has prioritised exports which increased by 31 per cent in 2014 over the prior year.