Supermarket to split shares
19 October, 2019, 6:50 am
A MAJOR supermarket has passed a resolution to split the shares in order to make ownership of the company more affordable for shareholders.
This was passed during RB Patel’s annual general meeting on Thursday in Suva as revealed by the company deputy chairman Nouzab Fareed.
“At $9.50 if a new investor wanted to buy RB Patel shares , the stock exchange rule is minimum of 100 shares, so $9.50 at 100 its more than $950, which means if you don’t have $1000 in your pocket you can’t become RB Patel shareholder which is not fair,” he said.
“So what we are doing is a share split, which means if you have 100 shares then you will automatically have 500 shares.
He said as a result of the share split the share prices would come back to $2.
“When it comes to $2, to buy 100 shares you will need 200 dollars, so it easy to have a $200 company rather than a $1000 that is the whole purpose.
Another motion that was also passed at the AGM was the shareholders as authorised directors wanted to go for a Right Issue.
“So Right Issue means the company can issue new shares and bring more money to the company.
He said Right Issue would bring money to the company as they would be able to issue new shares only to the existing shareholders in some proportion.