Carbacid shareholders get Sh2.69bn boost after split

Carbacid closed at Sh61.50 but touched a 52-week high of Sh62 in Thursday’s trading, having moved 34,000 shares. FILE 

By John Gachiri

Carbacid’s market value has jumped by a quarter in only two weeks following a split of the gas maker’s stock, raising by tens of millions the paper wealth of top shareholders.

In addition to becoming more liquid following the share split, Carbacid’s share price surge has also been driven by a dividend payout and bonus issue.

Carbacid’s market capitalisation stood at Sh10.45 billion at the close of Thursday’s trading from Sh7.85 billion mid this month when the split was effected, raising shareholders wealth by Sh2.69 billion.

Analysts said increased liquidity after the five-for-one share split has attracted institutional buyers to the Carbacid stock, which has pushed the share price up.

“The improved liquidity may have brought it into the fund manager’s range,” said market analysts at ABC Capital.

READ: Carbacid shares rise 59pc after bonus, share split announcement

The five-for-one share split increased the number of shares to169.9 million from 33.9 million.

Prior to the share split the company also announced a Sh3 dividend.

The gas maker closed at Sh61.50 on Thursday but touched a 52-week high of Sh62 in intra-day trading, having moved 34,000 shares.

Former cabinet minister Maina Wanjigi and billionaire businessman Baloobhai Patel are some of the listed firm’s biggest shareholders.

The company’s net profit grew to Sh475.5 million in the year to July compared to Sh389.2 million a year earlier, a 22 per cent increase but it maintained dividend payout at three shillings per share.

The firm’s sales however remained flat during the period at Sh952.8 million, a pointer that the profit growth was mainly driven by cost cutting.

Foreign investors

Carbacid produces and supplies pressurised carbon dioxide and dry ice, and has in recent years posted double-digit growth in sales including last year when its revenues rose 60 per cent.

Demand for CO2 has mainly come from food and beverage firms such as EABL, Coca-Cola, and flavoured juice makers who use the commodity as a preservative.