The Analysts of Taking Stock with Kalilah Reynolds say big news could be coming from Seprod soon, as the company looks to increase its share capital.

According to Seprod at its upcoming Annual General Meeting, shareholders will be asked to vote on a resolution to increase the company’s share capital from 780 million to 1 billion shares.

Business Journalist David Rose explained that such a significant increase in share capital would mean one of several things.

He said it could signal that Seprod is looking to raise capital through a market offering such as an Additional Public Offer or rights.

He also said the company could be looking to complete an acquisition using shares in Seprod as payment.

“It could also be the case where they see an opportunity to actually acquire you another business, potentially somewhere in the region or elsewhere, and they plan to do a share swap,” Rose said.

The Journalist noted that this would not be the first time Seprod has made this type of move. 

“Back in 2018, when they would have acquired Facey Commodities Limited through the issuance of shares, there was no cash at all,” he said.

“And even when Seprod sold its distribution centre to Eppley Caribbean Property Fund, in that deal Eppley would have issued shares to Seprod for the building, no cash transferred again,” he added.

Shareholders will vote on the resolution at the AGM, which is scheduled for September 27.

Seprod acquired the Trinidad-based manufacturing company AS Bryden last year and the partnership has been successful so far. 

The Group’s revenue had soared to $78 billion by the end of 2022. That’s almost 80% higher than 2021. Profit for 2022 also climbed $925 million or 46% to $2.9 billion.