Cable Bahamas Ltd.'s (CBL) share prices have jumped 22 percent since the company issued a three-for-one share split just over two weeks ago, leading to a year-over-year doubling in stock value compared to August 2014.
Speaking with Guardian Business, CBL Vice President of Marketing David Burrows stated that the company's share split had performed "extremely well" with share prices hitting $7.44 per share as of yesterday compared to the $6.10 per share offering made on August 9. "The performance thus far is tremendous. We've seen a 22 percent increase in the share price. What's interesting is that if you take a look at our market capitalization since last year this time it has doubled from $150 million to $303 million in a one-year period of time," Burrows said.
Prior to the split earlier this month, CBL shares sat at $18.30 per share with some 2,400 shareholders. Burrows noted that as of yesterday, CBL had open orders for roughly 123,000 shares valued at some $875,000 on the Bahamas international Securities Exchange (BISX). "That's quite good and at varying prices there are people looking to purchase Cable Bahamas' stock. It's really more about the liquidity right now and whether people are willing to sell because there's obviously people who are willing to buy," he said.
Although Burrows could not say how many new parties had invested in the company since the split, he said the company is excited at the prospect of attracting new blood to its list of shareholders. "We're extremely pleased that a wide range of Bahamians are once again able to get in to Cable Bahamas on the ground floor and realize benefits.
Right now, just about every Bahamian has an interest in Cable Bahamas, but with this share split it offers another way of them growing their own wealth with the company that is now an international company," Burrows said.
The split comes as CBL continues its push for the country's second mobile cellular license. With regional industry giant Digicel withdrawing from the bidding process in April, only CBL and Virgin Mobile (Bahamas) remain in the race for the license.
"We're just waiting on the official word. Hopefully we'll hear something soon based on the prime minister's comments that he was hoping something would happen by the end of July. Hopefully we'll hear something very shortly," he said. Regarding the company's other business ventures, Burrows said that CBL had gone from servicing 100,000 households to some 18 million customers following CBL's acquisition of four telecom providers in Florida in 2013.
"The business in Florida is going fantastically, certainly exceeding our expectations. Last year we were able to secure fiber backhaul for one of the largest mobile companies in Florida. We're providing backhaul to well over 120 towers throughout Florida for mobile," Burrows noted.
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