FINANCIAL MARKET : SEMC splits its shares to boost trading on the Bvmac

Inside the still relatively quiet trading rooms of the Central African Stock Exchange (Bvmac), screens display the often modest fluctuations of listed securities across the regional market. Among them, the stock of Société des Eaux Minérales du Cameroun (SEMC) has once again attracted investors’ attention. For several weeks, financial analysts, stockbrokers, and shareholders have been closely monitoring preparations for the upcoming general meeting of this subsidiary of Société Anonyme des Boissons du Cameroun (SABC), one of the most influential agro-industrial groups in Central Africa.

At the center of discussions is a technical operation rarely implemented on the Central African financial market: the splitting of SEMC shares. According to the resolutions submitted to shareholders, the company intends to reduce the nominal value of each share from CFAF 10,000 to CFAF 625. Behind this financial mechanism lies a clear objective: significantly increasing the number of shares available on the market without modifying the company’s overall share capital.

In practical terms, every existing share will be converted into sixteen new shares following the operation. An investor currently holding one share with a nominal value of CFAF 10,000 will therefore own sixteen shares individually valued at CFAF 625 each. The overall value of the investor’s participation will remain unchanged. According to the preparatory documents reviewed ahead of the general meeting, SEMC’s share capital will remain fixed at approximately CFAF 1.924 billion. However, the total number of shares in circulation will rise sharply, from 192,473 to more than 3 million shares.

Within financial circles, such an operation is generally viewed as a tool to improve a company’s stock market attractiveness. On the Bvmac, where trading volumes remain relatively modest compared to major African exchanges, several listed securities continue to suffer from low liquidity. SEMC’s stock, currently trading at around CFAF 49,000, is among the least actively traded securities on the regional market. Over the last three months, its liquidity indicator has remained close to 0.01, reflecting particularly limited trading activity.

In this context, the stock split appears to be a strategy aimed at making the share more accessible to retail investors while encouraging greater market fluidity. By lowering the face value of the stock, the company hopes to attract a larger pool of potential buyers, particularly small investors who are still underrepresented on the regional financial market.

The operation comes as the Bvmac is gradually seeking to stimulate market activity and broaden its investor base. According to data released by regional financial authorities, the exchange’s overall market capitalization remains largely dominated by a limited number of companies, while transaction volumes remain weak across several market segments.

For SEMC, which specializes in the production of mineral water through brands widely consumed in Cameroon, the restructuring could also help strengthen its visibility among institutional investors and regional market players. Company executives nevertheless insist that the operation will not generate any additional wealth for shareholders. Each investor will retain exactly the same ownership stake in the company’s capital, simply distributed across a larger number of shares.

In financial circles in Douala and Libreville, many observers already see the initiative as a sign of the gradual modernization of the regional stock market. The remaining question is whether this strategy will effectively stimulate trading activity around SEMC shares and, more broadly, encourage more active investor participation on the Bvmac.

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Esther Grâce

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