Seprod Shareholders Approve Five-for-One Stock Split and Share Capital Increase

• On October 12, 2026, Seprod Limited (SEP) advised that shareholders approved all three resolutions put to its virtual Extraordinary General Meeting (EGM). The resolutions increase the company's authorised share capital, subdivide each existing ordinary share into five, and authorise the Directors to issue shares from the unissued authorised share capital, including by way of an additional public offer.
• SEP's authorised share capital was increased from 1.00 billion to 1.90 billion ordinary shares through the creation of 900.00 million additional shares. Following the five-to-one subdivision, authorised share capital will become 9.50 billion ordinary shares, while issued share capital will rise to 4.55 billion shares from 910.95 million shares, based on the shares in issue at the date of the notice of meeting. The subdivision does not change any shareholder's proportionate interest in the company.
• The Directors are now authorised to allot and issue up to the whole of the unissued authorised share capital, whether through additional public offers, rights issues, private placements or as consideration for acquisitions. They are also allowed to apply the net proceeds as they see fit, including repaying debt across the group. However, the authority does not itself commit SEP to any share issue, and any additional public offer would require a prospectus registered with the Financial Services Commission as well as Jamaica Stock Exchange approval. The Directors will fix the record date for the subdivision, with the additional shares to be credited to shareholders' accounts in the ordinary course.
• Chief Executive Officer and Managing Director Richard Pandohie noted that the group has grown considerably through acquisitions over the last four years, with that growth funded in part by debt. He stated that the approvals give the company the ability to raise equity efficiently when the Board judges the time is right, accelerate the reduction of its borrowings, and redirect the cash currently used to service debt into integrating its acquired businesses and growing the group.
• For shareholders, the stock split is neutral in value terms, as each shareholder will hold five times as many shares at a proportionately lower price. However, the lower price per share could improve the stock's affordability and trading liquidity. The authority to issue new shares is more consequential, as any additional public offer or private placement would dilute existing shareholders who do not participate, particularly if the shares are priced at a discount. That said, using the proceeds to repay debt could lower finance costs and support earnings over time, partially offsetting the dilution. On balance, the impact on shareholders is mixed in the near term, with the final outcome depending on the size, pricing and use of proceeds of any future share issue.
• Year to date, SEP's stock has declined 4.8%, closing at J$79.86 on Wednesday, October 14, 2026. At this price, SEP trades at a P/E of 13.33x, in line with the Main Market Distribution & Manufacturing sector average of 13.33x.

(Sources: JSE & NCBCM Research)