Reis says local stock exchange undervaluing Banks DIH shares, Ali promises reform this year

Last Updated on Sunday, 11 January 2026, 22:08 by Writer

The Guyana Stock Exchange is undervaluing Banks DIH’s shares (BDH), the company’s Chairman, Clifford Reis said on Sunday even as he flagged the possibility of conflict of interest.

Speaking at the commissioning of the GY$13.7 billion new malt bottling plant at Thirst Park, East Bank Demerara he said the competitor’s share price was selling at GY$200 while Banks DIH’s was selling at GY$155.

“This does not reflect this company’s share value on the stock exchange which we have estimated to be between GY$400 and GY$450 per share,” he said.

He argued that available figures calls into question the integrity of the stock exchange. “Any reasonable person will consider that the stock market in Guyana cannot be taken seriously,” he said.

The Banks DIH Chairman said that raises the question about his company’s shares being sold at a lower price and the competitor’s for its true value. He also questioned whether there was a conflict of interest.

“I think this is the time to ask the question: Who are the shareholders of the broker companies buying and selling shares? Is there a conflict of interest and what is the financial matrix being used to value the shares on the Stock Exchange of this company,” he said.

Mr Reis said for the period 2021-2025, Banks DIH’s revenue increased by 45 percent and its profits increased by 54 percent.

By way of contrast, he said the share price was GY$300 in March 2022 and GY$155 in December 2025.

“This bulk of information I just mentioned, ladies and gentlemen, serves to emphasise the inherent contradiction in the downward movement of Banks Holdings share price while at the same the revenue and profits are increasing,” he said.

Mr Reis explained that the measurement of the share value relative to profit shows that the pre-tax profit at the end of its financial year was GY$17.6 billion or US$81 million.

He cautioned that selling 1,000 shares for GY$1.00 less than the opening price will reduce Banks DIH’s market capitalisation by GY$849 million. “This will have a serious financial implication for large shareholders,” he said.

He said Banks DIH’s earnings per share is GY$12.75 while the “other” company’s is G$12.69, while the dividend being paid by his company is GY$3.00 per share versus GY$2.00 by the “other competitor”.

Mr Reis said Banks DIH’s debt-equity ratio is zero as demonstrated by the fact that the construction cost for the new malt bottling plant came from the company’s cash flow “without any borrowing or selling of shares.”

The net profit measurement of the competitor is GY$5.5 billion while Banks DIH is GY$10.5 billion. “We are GY$5 billion and 92 percent more than the other company and there is no other company in this country on the Stock Exchange that makes more profit than Banks DIH Limited,” he said.

He said the regulatory body, Guyana Securities Council, is empowered by law to address the situation. “It is not rocket science or needs a genius to figure out the inconsistencies of Banks DIH shares trading on the stock exchange,” he said.

He reiterated the need for an odd-lot market or failure to do so would affect the development of the capital markets. Mr Reis said he had raised his concerns with President Irfaan Ali, a former Banks DIH employee, who assured him that he would “look into this matter” and that government would make changes to the capital markets.

In his address, the Guyanese leader said he would not divulge announcements that would be made by finance minister Dr Ashni Singh, but promised that after consultations with the private sector there would be stock exchange reforms including the establishment of a junior stocks exchange. “Over the next coming weeks, you would see a massive push towards the modernisation of this whole financial architecture that includes, of course, the stock market,” he said.

Dr Ali said discussions between himself and Mr Reis also focussed on “ensuring shareholders believe that they are getting dividends that are reflective of the growth of the company and their belief that the share value is also reflective of the growth of the company’s assets and shares.”

Dr Ali said it is very important for the valuation system of the company to reflect the real value for share transfer and fair mechanism through which shareholders receive their dividends.

Mr Reis said the new plant can produce 400,000 cases of beer per month on a single shift or 800,000 cases in a double shift. He also says the plant can store 900,000 cases of malt a month and brew 800,000 cases per month and bottle 800,000 malt per month.

Banks DIH began in 1955 with 3,000 shareholders now grown to 13,393.