PBS & Express Catering over the top

NCB Capital Markets, brokers to the initial public offer of ordinary and preference shares for Productive Business Solutions which opened July 5, 2017 closed on Tuesday, July 11 for the Ordinary Shares at the price of US$0.55 per share.
The brokerage house, stated that the basis of allocation to be communicated later. The Invitation for subscription by the Company in respect of at a price of J$100 per share remains open and the public will be duly advised when same is closed. The original date for closure of both issues was set for July 26.
PBS issue was seeking to raise US$41.5 million by ordinary shares, with US$8.7 million of it to be used to International Finance Corporation. The IPO also includes 25,800,000 9.75% Redeemable Cumulative Preference Shares denominated in Jamaican dollars. The issue allocated 27,272,727 of the ordinary shares for Portland JSX, 7,272,727 units for staff with 4,545,455 shares for the General Public.
Part of the proceeds will be used to paid debt of US$17.45 million and working capital of US$13.85 million.

Ian Dear, Managing Director of Express Catering

For the year to December 2016, a loss of US$3.3 million was incurred down from a profit of $1.2 million in 2015. Revenues fell in both years to $171 million in 2016 from $194 million in 2015 and $202 million in 2014 when a small loss was incurred. Finance cost in 2016 increased by $2.6 million. The increase is attributed primarily to interest associated with the increase in debt of $998,000, FX loss of $920,000, and amortization of deferred expenses associated with the bond of $724,000. In the March 2017 quarter revenues rose to US$42.45 million from US$39.32 million with profit rising to US$838,000 before taxation of US$389,000 from a loss the year before.
PBS has borrowings of US$66 million with US$10 million due to related parties as at December 2016. The prospectus indicates that the shares are to be listed on the main market of the Jamaica Stock Exchange and on Barbados Stock Exchange’s International Securities Market, subsequent to listing in Jamaica.
Reports reaching IC Insider.com is that Express Catering was oversubscribed with the issue closing this morning as more than 1,000 applications were received by the broker for the issue, Mayberry Investments. The 100 percent Shareholder of Express Catering, Margaritaville St Lucia, offered 327,500,000 of existing shares for sale at $1.50 each, to raise approximately $490 million. Only 32.6 million shares were made available to the general public. The Stock is slated for listing on the Junior Market.

One ECCU Insurance & pension regulator

Eleanor Astaphan, Project Manager of the Single Market Insurance and Pension in the Eastern Caribbean Union

The Caribbean English speaking countries are spread across the region with most having duplication of institutions that could be more efficiently operated as one or two units to benefit from economies of scale.
We cooperate in a number of areas, most noted is in cricket where we have one team. From an economic point, the ECCU based countries have been cooperating on a number of fronts,  the most noted being The Eastern Caribbean Central Bank and one common currency. The countries are now working on setting up one body to regulate the insurance and pension industry as a single market.
According to Eleanor Astaphan, the Project Manager of the Single Market Insurance and Pension in the Eastern Caribbean Union the countries in the grouping have signed an agreement to establish the regulatory body which is likely to be operational in 2018. Revenues for the body is proposed to come from fees to be levied on industry, but this is the subject of discussion with industry players.
Under the new arrangement, when effected will require businesses to register in one territory to be able to operate in any country within the union.
Eleanor Astaphan was addressing a workshop for the Caribbean Association of Insurance Regulators hosted by the Financial Securities Commission of Jamaica and held at the Pegasus Hotel in Kingston earlier this week.
Other presentors included John Jackson who gave the key note address and spoke of the need for financial regulars to be more proactive to ensure proper protection of investors. Jackson pointed to a number of issues that are occurring that are inimical to the sector and if not addressed could lead to major problems. Jackson also suggested the need for merging of a number of regulatory bodies across the region and creation of a single capital market.
The conference was addressed by Stuart Wason of the IMF, who resented papers on capital adequacy and assessing systemic risk in the insurance industry and Meg Mulry of AM Best spoke on strengthening insurance regulation and data collection in the Caribbean.

Jamaica abounds with opportunities

Attentive shareholders at Jetcon recently held 2017 AGM

The successful performance of Jetcon Corporation since listing in 2016, reveals the rich opportunities that exist in Jamaica for Jamaicans to better themselves financially, chairman of the company, John Jackson said, in addressing shareholders at the company’s first Annual General Meeting, as a public company.
Jackson went on to state “ordinary Jamaicans need adequate education, need to corporate with and trust one another, share our assets in an organized manner and the sky is the limit to what can be achieved’. “Many opportunities exist for Jamaicans to profit from, however, they need to learn how to find them.” This means, with greater financial sophistication born out of knowledge, coupled with the advent and buoyancy of the Junior Market, ordinary Jamaican families can capitalize on various financial prospects that exist in the country”. The success of Jetcon and other newer businesses in the country suggests the need for an intervention of the Jamaican authorities to educate Jamaicans on the immense opportunities that exist to lift their quality of life through financial education and investments by pooling of their financial resources.
Jackson was speaking against the back drop of Jetcon Corporation’s doubling in profits for 2016 with preliminary data to May 2017, showing revenues rising by 75 percent and profit of approximately 150 percent over 2016.

Golding hands over Caricom report

Former Prime Minister Bruce Golding handing over the report of the finding and recommendations relating to Jamaica and its relationship with Caricom to current Prime Minister Andrew Holness at Jamaica House on Thursday.
The report was concluded after interviews with several former Prime Ministers and current ones from within the region, along with other interested persons from institutions such as Trade Unions and senior members of political parties and input from the general public were received over the internet.