Seprod considers additional public offer

Seprod Limited will ask shareholders to approve a five-for-one stock split and a near doubling of its authorised shares, a move that would let the company issue new stock or raise fresh capital.

The company will hold an extraordinary general meeting on October 12, according to a release. Shareholders will vote on three resolutions. The first would raise the number of authorised shares from 1.0 billion to 1.9 billion. The second would subdivide each share into five, lifting the authorised total to 9.5 billion units. The third would give the board authority "to issue new shares in future, including through an additional public offer".

Authorised shares cap the number of shares a company can issue. Seprod has 910.9 million shares in issue against its current 1.0 billion limit, leaving room for only about 89 million more.