Managing Director of Stationery and Office Supplies (SOS), Allan McDaniel, says investors can expect the company’s stock split to take effect by early August.

The 58-year-old company manufactures and distributes office furniture and stationery. 

SOS listed on the Junior Market of Jamaica Stock Exchange in 2017. In June the company’s board approved a 9:1 stock split.

Speaking on Taking Stock with Kalilah Reynolds, McDaniel said the board felt that now was the right time for the split, as SOS’s stock is one of the highest on the Junior Market.

“We had always in our head that we wanted to hit a $20 stock price mark. And speaking to brokers and financial advisors, we always looked at that $20 share to consider the split,” he said.

“Right now, 91% of our shares are in the top 10 hands so we find that there isn’t  lot of trading,” he added. 

McDaniel also noted that the nine-way split was also a strategic decision to make the stock more affordable while still reflecting the company’s overall success.

“We listed a few years ago at $2 dollars so we didn’t want to go below that. So a 9:1 split now would bring us down to the $3 range,” he noted.

SOS closed the week at $27.31.

The Managing Director said that shareholders will get a chance to vote on the stock split at its upcoming annual general meeting on July 25. If the split is approved then, he said it should take effect by the first week of August.

According to McDaniel, the split is just one way to show appreciation to investors for their contribution to the company’s stellar performance.

SOS had a record-breaking year in 2022, reporting revenues of $1.7 billion, an over 60% increase from the previous year. Net profits also doubled to $256 million. The momentum carried over into their first quarter when the company’s revenue increased by 22% to $519 million. They also set a new record in March with $207 million in sales for the month. 

This is all happening as SOS is on a massive expansion plan.

The company is reportedly pumping some $60 million to build another storage warehouse on its Beechwood Avenue property. Plus they’re upgrading the delivery fleet by adding three more units.

The company also signed some local and regional partnerships to expand its product lines.