Wigton attracts over 30,000 applicants

May 10, 2019 by

Wigton IPO prospectus is out.

Wigton Windfarm’s recent IPO is said to successfully attracted more than 30,000 applications, for the 11 billion shares that were offered at 50 cents each, IC insider.com has been advised.
IC Insider.com gathers that the number could reach as much as 32,000 applications and is more than 100 percent oversubscribed. The number of applicants, suggest that the level of oversubscriptions is most likely lead to the issue being twice oversubscribed. Based on the formula announced for allocation that will see smaller applications getting full allocation, the top bidders are likely to be disappointed with what they end up getting that could see their take coming for 10 percent or less, depending on the amount applied for.
According to a release from Mayberry Investments lead brokers, “all Applicants (large or small) up to the first 10,000 shares will be met. Applicants in excess of 10,000 will then be met in similar fashion in increments of 10,000 until all applications are met or all shares are allocated”.
The number of applications seem to be close to the issue of National Commercial Bank in 1987 that attracted over 30,000 applications, with the issue being oversubscribed by 175 percent.
The oversubscription should result in a healthy liquid market, when the stock starts trading in a few weeks time.

Filed Under: Breaking News, Initial Public Offers Tagged With: , ,

The Lab, coming to a broker near you

April 13, 2019 by

NCB Capital Markets is readying a number of new public share issues to come to market by the summer this year.
Numbered amongst them are, The Lab that styles itself as a fully integrated 100 percent Jamaican born and bred advertising agency with global reach and an island swagger. “We are a strategic, creative, passionate solutions oriented and no nonsense group with a heavy emphasis on getting stuff done.” Kimala Bennett is the company’s Managing Director. Clients include National Commercial Bank, JPS, Wendy’s, Dominos, Supreme Ventures, Wray and Nephew, Grace Kennedy, Caribbean Broiler and Digicel. Persons in the know say this is one of those IPOs to plan for, it unique and profitable. QWI Investments is another that NCB Capital Markets is readying to take to the Jamaica Stock Exchange main market by early summer.

Kimala Bennett, Managing Director of The Lab.

Another that will be coming to market is Sagicor Select Funds Limited an Exchange Traded Fund. According to a note in the Sagicor Group audited financial statements, “It is the intention of the company to apply to the Board of the Jamaica Stock Exchange for admission of the shares to trading on the main market if subscriptions of at least $5 billion are raised.”
The above will come on top of the current public offer of Wigton Windfarm that opens next week to raise $5.5 billion, earmarked to be paid over to the government after expenses associated with the offer.

Filed Under: Initial Public Offers, JSE Combined, Stock Market Tagged With: , , , , , , , , , , , , ,

Wigton Windfarm’s profit upgraded

April 10, 2019 by

Wigton IPO propectus is out.

Net profit for the nine months to December 2018 for Wigton ended at J$730 million compared to $1 billion reported in 2017 before taxation.
IC Insider.com now projects normalized earnings for the 2019 fiscal year between $600-700 million resulting in earnings per share of 6 cents. As earnings for the above periods, include foreign exchange gains and losses. Included in other income is $552 million to December 2018 of foreign exchange gains and in Finance cost, $748 million, in foreign exchange losses. With the company repaying the foreign currency loans, the main source of foreign exchange gains or losses no longer exits, hence the need to normalize results without them.
Based on the updated earnings, with the price of the stock at 50 cents each, the PE ratio is now
8.5, valuing the company at just $5.5 billion. The stock now sits at number 4 on IC Insider.com TOP 10 main market stocks, making it more attractive than the value based on the projection to March this year, included in the public bodies’ document.
“Wigton Windfarm IPO out very soon” an article published last week is running at the number one best read article on IC Insider.com and represents a clear sign of the popularity of the issue that opens on April 17.
IC Insider has now updated certain aspect of a second article, Wigton Windfarm IPO prospectus is out, carrying a more detailed look at the offer, and is proving to be quite popular but running well behind the first one currently.The lead broker for the IPO is Mayberry Investments.

Filed Under: Initial Public Offers Tagged With: , , , ,

Wigton Windfarm IPO prospectus is out

April 8, 2019 by

The long awaited prospectus for Wigton Windfarm is now available to the public, with an offer of 11 billion shares priced at 50 cents each. The offer will officially open on April 17 and scheduled to close at 4.30 pm on May 1.   
The company’s net energy output can only be sold to Jamaica Public Services Company, the country sole marketing entity, supplying energy to consumers. According to the government’s public bodies accounting records, the company projects profit of $587 million to the end of March this year, down from $826 million earned in 2018, helped by other income of $637 million versus just $52 million in 2018. The company generated sales revenue of $2.5 billion in 2019 and $2.36 in 2018. The annual growth in profit before finance cost is minimal grew just over 11 percent in 2015 and 2016 and a much slower 7 percent in 2017 and 2018, with a 6 percent decline in 2019.

Wigton IPO propectus is out.

In the nine months to December 2018 sales revenue was $1.95 billion compared to J$1.91 billion in the prior comparable period in 2017. Cost of Sales closed at J$544 million compared to J$535 million in the nine-month period for 2017. Gross Profit ended at J$1.4 billion compared to J$1.38 billion in 2017. Net profit for the nine months to December 2018 ended at J$730 million compared to J$1 billion reported in 2017.
Earnings for these periods, include foreign exchange gains and losses. With the company repaying the foreign currency loans, the main source of foreign exchange gains or losses no longer exits, hence the need to normalize results without them. IC Insider.com projects normalized earnings for the 2019 fiscal year between $600-700 million, resulting in earnings per share of 6 cents.
The company is heavily indebted with $6.3 billion of borrowed funds carrying interest rates of 6.65 percent to 8.4 percent with an average rate of just under 8 percent. Cash funds on hand amounts to $1.4 billion and equity of $2.4 billion. Current assets exclusive cash and payables are minimal. The company had borrowed most of it loans in US dollars, resulted in annual swings in net profit as the

Mayberry Investments is the lead broker.

exchange rate of the Jamaican dollar moved up and down. Loans in US dollars were paid off and the company raised Jamaican dollar funds, in preparation for the initial public offer.
The company’s generating capacity is 63 mega-watts. Wigton I Power Interchange Agreement expires in April 2024 and accounts for up to 20MW, Wigton II Power Purchase Agreement expires, December 2030 to supply up to 18MW and Wigton III Power Purchase Agreement ends in March 2036 for up to 24MW.
The price of the stock results in a PE ratio of just under 8.5, the company would be valued at just under $5.5 billion and sits at number 4 on IC Insider.com top 10 stocks. The big question that should be on investors minds, when will meaningful growth in revenues and profits come to justify holding the shares beyound what may well be an initial bounce.
The company directors are; Oliver Holmes, B.Sc., M.Sc. (Acct.) Non-Executive Chairman, Nigel B. Davy, B.T., J.P. Non-Executive Director, M. Georgia Gibson-Henlin, Q.C., B.A. LL.B. LL.M., F.C.I. Arb. Non-executive Director Hugh Johnson, Non-executive Director Gregory Shirley, B.A., M.B.A. Non-executive Director, Jacqueline Stewart-Lechler, J.P. Non-executive Director.

Filed Under: Feature Stories, Initial Public Offers Tagged With: , , ,

Wigton Windfarm IPO out very soon

April 1, 2019 by

Report reaching IC Insider.com is that the long awaited prospectus for Wigton Windfarm is due this week. The stock is set to come to the market at 50 cents each.
According to the government’s public bodies accounting records, “the divestment will be by way of listing PCJ’s 100 percent shareholding in WWFL on the Jamaica Stock Exchange.” The company is expected to report profit of $587 million to the end of March this year, down from $826 million earned in 2018. The 2018 earnings were helped by other income of $637 million versus just $52 million in 2018.
The company generated sales revenue of $2.5 billion in 2019 and $2.36 billion in 2018. Depreciation charge is high at nearly $700 million, this will result in a healthy cash flow per annum, allowing to either pay down debt or fund expansion from internally generated resourses and provide a basis of growing profits going forward.
The annual growth in profit before finance cost is minimal, growing just over 11 percent in 2015 and 2016 and a much slower 7 percent in 2017 and 2018, with a 6 percent decline in 2019.
The company is heavily indebted with $7 billion of borrowed funds, $1.4 billion in cash funds on hand and equity of $2.4 billion. Current assets exclusive of cash and payables are minimal. Borrowed funds were mostly in US dollars and resulted in annual swings in net profit, as the exchange rate of the Jamaican dollar moved up and down against the United States dollar. Loans that were previously denominated in US dollars, were swapped for Jamaican dollar funds, in preparation for the initial public offer.
The company’s generating capacity is 63 mega-watts with the output contracted to Jamiaca Public Seervice Company. Assuming a PE ratio of 10, the company would be valued at just under $6 billion.

Filed Under: Breaking News, Initial Public Offers Tagged With: , , , ,

Paramount goes to market for $300M

March 24, 2019 by

Paramount

Junior Market listed, Paramount Trading, goes to market to fetch $300 million at a rate that is set to exceed 12 percent per annum.
The company just issued a prospectus offering 150 million cumulative redeemable preference shares due 2021 priced at $2 each at fixed rate of 8.75% per annum. On the surface that seems a bit reasonable but with other costs, the annual rate will be approximately 12 percent. The prospectus indicates that the issue is to take advantage of opportunities for improvement and expansion of the business, to provide working capital and for general corporate purposes and to pay the expenses of the Invitation, which the Directors believe will not exceed $16.5 million. That cost adds approximately 2.75 percent per annum to the interest rate, bringing it to 11.5 percent. There will also be fees for listing on the Jamaica Stock Exchange, even more than the listing fees will be the monthly fees to be incurred, for making the monthly interest payments and providing annual reports to preference shareholders, for the two years. Mayberry Investments are the brokers to the issue.
Paramount’s profit peaked at $173 million in 2016, fell to $101 million in 2017 and then to $59 million in 2018. For the half year to November last year, profit slipped to $35 million compared to $58 million for the 2017 period. The company only had $62 million in borrowed funds but Inventories and payables climbed sharply over the previous year.

Filed Under: Initial Public Offers Tagged With: , , , , ,

Weak demand to affect ICreate stock

February 7, 2019 by

Subscribers for shares in the public offer of 74,062,500 Ordinary Shares in iCreate received a high percentage of the amount applied for, except for applications with more than 400,000 units.
According to Sagicor Investments, the lead broker for the issue, all the applications received, the first 400,000 units in full with those with balances in excess of 400,000 units for the General Public Pool was allocated approximately 1.32 percent of the excess.
This is not great news for many of the investors in the issue as they could see a fall in the price of the stock as there seem to be inadequate demand for the stock at the issue price of $1.01 before it moves higher.
The stock is scheduled to be listed on the Junior Market of the Jamaica Stock Exchange.

Filed Under: Initial Public Offers, Stock Market Tagged With: , , , , ,

iCreate IPO oversubscribed

February 2, 2019 by

The ordinary shares of iCreate is set to be the next Junior Market listing that will bring the total companies to listed to 38 and the total securities to 40.
Sagicor Investments advised the Jamaica Stock Exchange that the public issue of shares in the one-year old company was oversubscribed with the issue closing on February 1 at 1:00 pm a little less than two days after it opened.
ICreate initial public offer of shares, sought to raise $70 million from 74,062,500 ordinary shares offered to the public at $1.01 each to help fund expansion. The offer opened on Thursday, January 31 and was originally scheduled to close on February 14.
Financial statements for the company showed that they were close to a break even in 2018.
The company is a creative learning institute developed with the aim of providing skills training and development of creatives in the Caribbean and North America.

Filed Under: Initial Public Offers, JSE Junior Market, Stock Market Tagged With: , , , ,

ICreate prospectus is here

January 23, 2019 by

The prospectus, for ICreate initial public offer of shares, is now out. The company seeks to raise $70 million to help fund expansion.
The offer opens on Thursday, January 31 and scheduled to close February 14, with 74,062,500 ordinary shares offered to the public at $1.01 each. The company will list on the Junior Market of the Jamaica Stock Exchange, if the issue is successful. Applications are to be made for a minimum of 1,000 shares and multiples of 100 thereafter. If the issue is successful, the share capital will be 197,592,500 units, with 123.5 million units owned by EMedia and Sagicor Investments.
iCreate says “it is a creative learning institute developed with the aim of filling the gap in skills training and development of creatives in the Caribbean and North America. We provide students with a wide range of career opportunities in the Creative Economy while being a key partner of the Advertising Industry, Film Production Companies, Animation and Gaming Companies, and Creative Outsourcing initiatives.”
Existing locations are Kingston, Montego Bay, and Miami. Kingston is currently the only location that offers the full suite of courses. In Montego Bay, the company currently offer our flagship course (Professional Diploma in Digital Marketing) with the remainder to come on board once they built out the infrastructure required to deliver the courses based on our iCreate standards. “Our projected timeline for this is by or before the end of the first quarter of 2019. Miami is in the early business development stage,” the company stated in the prospectus.
The company reported a loss of $4 million for the six months to September from revenues of $18 million and projects profit of $8 million from revenues of $147 million for the year to December 2019 with profit of $62 million from revenues of $250 million in 2020.  Shareholders equity is negative $1.3 million dollar at the end of September.
The company is small, has only recently started business and is at a risky stage of development. Investors need to bear this factor in mind. While the forecast for 2020 appears attractive, the income generated in 2018 does not show a trajectory to support the high income growth, that the above forecast reflects. The business will benefit from the exposure that the IPO and listing will bring and that could help drive revenues. The positive is that current operations show signs of profit with at least two quarters last year, enjoying a profit.
The board is extremely large with nine members for a small company when seven seems more appropriate. The board comprise, Sandra Glasgow, Chairman, Tyrone Wilson, Rhys Campbell, David Wan, Mischa Mcleod-Hines, Sheree Martin, Devon Lawrence, Dr. Jennifer Bailey and Kenneth Benjamin.
The majority shares are owned by EMedia Limited, with Sagicor Investments, holding a minority position. Broker to the deal is Sagicor Investments.

Filed Under: Breaking News, Initial Public Offers Tagged With: , , , , , ,

ICreate ipo opens January 31

January 22, 2019 by

The ICreate initial public offer of shares will open on Thursday, January 31.
The issue is scheduled to close on February 14, with the prospectus set to be released this week, word reaching IC Insider.com reveals.
The issue is a sale of 74,062,500 ordinary shares to the public at $1.01 each. The shares will be listed on the Junior Market of the Jamaica Stock Exchange, if the issue is successful. Revenue is said to be running in the region of just under $50 million per annum with prospects for strong growth going forward. Already the company is making a small profit, IC Insider.com gathers. The business is the training of students in graphic designs and animation.
The majority shares are owned by EMedia Limited, with Sagicor Investments, holding a minority position. Broker to the deal is Sagicor Investments.

Filed Under: Breaking News, Initial Public Offers Tagged With: , , , , ,