tTech mulls stock split
Technology provider tTech Limited is considering a stock split to boost trading of its shares on the junior market.
CEO Edward ‘Teddy’ Alexander says the he will approach the board in coming weeks with the proposal.
“tTech volumes for trading has been low,” he told Gleaner Business in the wake of the company’s annual general meeting on Thursday. The stock trades frequently and mostly in thousands of units, but sometimes volumes fall into the hundreds.
“This probably has a lot to do with the low amount of outstanding shares in the first place and so trading could benefit from greater liquidity,” said Alexander. “I’ll certainly put it to the board to see what they think,” he said.
tTech is a small cap stock whose 106 million outstanding and listed shares are currently valued at $832 million or $7.85 per unit. The stock has traded as high as $9, which is more than triple its listing price on the JSE junior market at $2.50 per share in January 2016.
The tech company had a good year in 2016. Net profit spiked 58 per cent, attributed in part to a new PBX system that it sold to a major media company as well as an increase in the number of companies using its cloud computing and IT security consulting services.
Alexander was also optimistic about growth in the current year.
“We are very bullish on our prospects right now. We expect that a number of big proposals that are at various stages of negotiation should come through and that will translate to greater revenue flows,” the CEO said.