GraceKennedy stock split approved
GraceKennedy shareholders approved a three-for-one stock split on Monday to be executed on August 11.
The stock has climbed from $81 per share since the start of the year to as high as $125. The recent spike in the trading price followed the conglomerate’s signal at its annual general meeting in May that the split was imminent, subject to board and shareholder approval.
The stock traded just below $119 on Monday. The split will triple the units held by shareholders but the value of their holdings will not change.
GK Group CEO Don Wehby, speaking with Gleaner Business after the vote, said he expects the stock to trade more frequently after the split.
“We expect that liquidity of the stock will improve and therefore that will give the opportunity for more investors to be in a position to purchase. By precedent we expect that the stock will find its true value over a period of time,” said Wehby.
The conglomerate is now valued at over $39 billion by market capitalisation.