Initial Public Offers

Portland JSX over

July 1, 2016 by IC Insider.com

VM Wealth were the brokers for the IPO.

More than 550 applicants banked $1.52 billion on the prospect of Portland JSX Limited delivering superior returns for them. The company offered 111,818,812 ordinary shares at $11 each in an initial public offering on June 6 to raise $1.23 billion. Investors demanded 23.5 percent more than the amount offered and the company took it all.
VM Wealth Management advised that the Portland JSX IPO closed on June 22, with the offer oversubscribed and raising $1.52 billion, said lead broker VM Wealth Management.
The terms of the prospectus allowed the directors the right to accept subscriptions in excess of the stated raise and will issue and allot additional Shares to satisfy as much of the applications in excess of the stated raise as they, in their sole discretion, shall determine appropriate.
It is the intention of the Company to apply to the Jamaica Stock Exchange for admission of the ordinary shares to the main market.
The invitation to investors stated, “Many investment opportunities remain in essential services throughout the Caribbean, and Fund II is well positioned to pursue them.” DOUGLAS HEWSON, Chairman of Portland JSX stated in the prospectus.
Hewson further stated “With Fund II, Portland is seeking to replicate the success of Fund I – in simple terms, it is the same team executing the same strategy but with the benefits of lessons learned. Our view is that the Caribbean remains overlooked and underserved by equity capital providers. With Fund II, we continue our strategy of investing in scalable businesses in defensive industries while exploiting this capital gap for the benefit of our investors.

The Team believes we are off to a good start. We have closed on USD136 million with leading global emerging market investors, have completed three investments in sectors we find very attractive on a risk adjusted basis (wind energy, telecommunications and financial services), have a strong pipeline of investment opportunities, and have an investment team that is passionate about making a difference. As an investor increasing its capital commitment to Fund II, PJX and, by extension PJX shareholders, will benefit from a look-back into current fund portfolio.”
The Company is incorporated in St Lucia in September 2015 and the business of the Company is to invest as a Limited Partner in Portland Caribbean Fund II which in turn invests in other businesses over a period of several years.
The performance of the Company is highly dependent on the timing of these investments. The Company intends to use the proceeds of the IPO to invest primarily as a limited partner in Portland Caribbean Fund II, which holds a portfolio of equity or debt securities of companies, located in the Caribbean and Latin America the majority of which, over the life of PCF II, are expected to be private. According to the prospectus, PCF II’s objective is to provide above average returns over the long term primarily by investing in undervalued companies with good potential. The industry focus is telecommunications, financial services and energy.
At the time of the IPO the company issued 170,926,161 ordinary shares and the issue brings the total to 309 million units. The company intends to distribute one hundred percent of distributable net profits as dividends.
IC Insider views investment in the company as one for long-term returns, with the hope that the businesses the funds are invested in deliver a good rate of return. The full allocation for all applicants will mean that there will be reduced demand after listing as it appears most demand for the stock has been filled.

Filed Under: Initial Public Offers, Stock Market Tagged With: Initial Public Offering, Jamaica Stock Exchange, Jamaican Stock, Portland Caribbean Fund, Portland JSX, VM Wealth Management

Eppley seeks $317m from right issue

May 3, 2016 by IC Insider.com

eppley Eppley limited, providers of insurance premium financing, is expected to raise $317 million from its renounceable rights issue of ordinary shares, when it offers 487,703 new ordinary shares priced at $650 to ordinary stockholders this month. The record date for the issue is Friday 6 May and the date for the stock to start trading ex rights, is May 4.
Proceeds from the rights will doubled the company’s existing equity capital of $314 million and improve the debt to equity ratio which is heavily weighted towards medium term redeemable preference shares with total borrowings of $997 million at the end of March, this year.
The company reported a 17.7 percent increase in profit after tax for the first quarter this year, of $10.6 million over the $8.7 million made in the first quarter of 2015. Profit for 2015 financial year ended at $56.5 Million.
Since the company announced plans for the issue, the price moved from $400.01 to $650 in this morning’s trading for an increase of 62.5 percent. The proceeds will allow them to expand their offerings and or pay down debt.
Eppley is listed on the junior market of the Jamaica Stock Exchange, and last traded at $650 with a PE ratio of 8.

Filed Under: Breaking News, Company News, General Business News, Initial Public Offers Tagged With: Eppley limited

Jetcon listing slated for Thursday

March 21, 2016 by IC Insider.com

Jetcon 03-16 Jetcon Corporation coming on the heels of a successful issue of shares to the public that opened on Monday March 14, in respect of 44,500,000 ordinary shares is expected to start trading on Thursday, March 24 with the listing committee meeting on Tuesday to consider and approve the listing.
The offer closed shortly after opening on Monday after it was oversubscribed. A total of 256 applications covering $113 million were received. Applications of all reserved shares were fully satisfied while the general public got the first 5,000 Shares applied plus 83.11 percent of the balance. The shares were sold to the public at $2.25 each. the closure left some investors out in the cold as they missed the early closing time of the offer.
Listing on the junior market will result in no corporate taxes being paid for 5 years from the time of listing. Jetcon reported profit of $50.6 million for the 2015 year and enjoyed 45 percent increased revenues for the first two months of 2016 ahead of the similar period in 2015, accordingly, IC Insider rate the stock Buy Rated.

Filed Under: Initial Public Offers, Stock Market Tagged With: Jetcon, junior market

ISP Finance – next junior listing

March 15, 2016 by IC Insider.com

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I$P ISP Finance is an unsecure loan company that is seeking to list on the junior market of the Jamaica stock Exchange with the raising just over $97 million from directors staff and the general public.
The company is now offering 48,982,500 ordinary shares to the public of which 45,900,000 are reserved for directors and employees, at $2 per share. Only a small amount, 3 million units will be available for the general public unless the reserved shares are not fully taken up. Opening Date of the offer is March 21, 2016.
ISP started operating in 2007 and has a number of years of profitability but is yet to wipe out accumulated losses. Currently there are 56 million shares issued to the Chief executive Dennis Smith and his wife. In 2015 the company reported audited profit of $30.7 million before tax but benefited from a refund of captive insurance premium of $12.3 million, excluding this, the company made profit of just $6 million. Additionally, salaries cost fell to $62.5 million from $77.6 million. While 2014 showed a loss of $4.5 million before tax after booking insurance premium of $41.7 million, excluding this amount would result in profit of just over $36 million or earnings per share of 65 cents. The earnings based on 2015 results, adjusted for the one off income, would be 10.7 cents and 65 cents for 2014. The PE based on pretax profit would be 18.7 times 2015 earnings and just 3 times 2014 numbers.
In the first four years of operation the Company’s customers were primarily employees from the security services sector. The Company has since expanded its customer base to other private and public sector workers as well as to micro and small entrepreneurs in the manufacturing, services and distribution sectors.
ISP Finance intends to strategically expand its reach geographically to other areas where there is a concentration of employed individuals and business development, including Montego Bay, Ocho Rios, Mandeville, Spanish Town, Portmore and May Pen.
The Company utilizes cash generated by the business and loans from a variety of sources to fund loans to customers. Indebtedness to banks, financial institutions and other lenders amounts to $218 million as of February 11, 2016.
Since commencing business in February 2007, the Company’s Loan portfolio has grown from approximately $2.5 million to $304 million in 2015 before provision for loan losses. Loan loss provision stood at $62 million at the end of 2015 compared with $44.5 million at the end of 2014. Loan loss expense for 2015 amounted to $18.6 or 7.75 percent of net loans and is favorable compared with Access Financial at 8.9 percent. Interest rates on loans ranges from 50 to 65 percent.
Clifton Cameron is an Independent, Non-executive Director and Chairman of the Board. He was a major owner of Manufacturers Merchant Bank that was acquired by Sagicor Bank.
The results for 2015 looks disappointing with just a small profit but results for 2014 when adjusted for the high level of insurance cost looks very promising. The company is involved in high risk business with loan provisioning amounting to 20 percent of overall loan portfolio an increase from 15.7 percent at the end of 2014. Expansion if not managed well can be costly but they will face strong competition in the market with much bigger companies than themselves.
At the end of 2015 equity capital was negative $7 million with accumulated deficit of $12 million, down from a deficit of $39 million at the end of 2014.
ISP is not the last company slated fro the junior market as IC Insider gathers that Key Insurance Company is also set to offer shares to the public to try and make the junior listing before the end of March.

Filed Under: Company News, Initial Public Offers, Stock Market Tagged With: ISP Finance, junior market, Key Insurance, Manufacturers Merchant Bank

Jetcon IPO over the top

March 14, 2016 by IC Insider.com

Jetcon 03-16 Interest in the initial public offer by Jetcon Corporation of 44.5 million shares up to $2.25 each to the public, has attracted much investors’ interest. Officially, the issue was closed at 9.01 am shortly after opening at 9 am on Monday. Applications received up to late Thursday, last week exceeded the amount on offer, information reaching IC Insider.com indicated.
The offer which officially opened on March 14 was slated to close a few days later, on the 17th.
The offer is slated to raise $95.66 million for use by the company to fund the cost of listing and for working capital and expansion purposes. Jetcon started operation 1994 to import used cars from Japan for resale in Jamaica and enjoyed years of successful operation.
In 2015, the company enjoyed a strong 49.9 percent growth in revenues of $523 million up from $349 million in 2014. Revenues since the end of 2015 continued to grow, increasing by 45 percent to the end of February. The company recorded profit before tax of $50.6 million in 2015, with a net profit of $40 million.
Completion of the issue will bring the total number of junior market ordinary share listings to 27 and the total listings to 31 securities, with Iron Rock having successfully completed their public offering, earlier in March and expected to be listed for trading on Tuesday March 15.
Listing on the junior market will cut its tax cost for 5 years but importantly, lead to increased exposure for the company that should redound to the benefit of the company with increased exposure and sales.

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

Jetcon revs up for junior market

March 9, 2016 by IC Insider.com

Jetcon 03-16 Jetcon Corporation is heading to the junior market, if their invitation to sell 44.5 million shares up to $2.25 each to the public, is successful. The share offer opens on Monday March 14 and is slated to close a few days later, on the 17th.
Successful completion of the issue, would bring the total number of junior market ordinary share listings, to 27 and the total listings to 31 securities, with Iron Rock having successfully completed their public offering on March 1st.
Jetcon enjoyed strong 49.9 percent growth in revenues of $523 million in 2015 up from $349 million in 2014. Revenues since 2015 continued to grow, increasing by 45 percent. The company recorded profit before tax of $50.6 million in 2015 with a net profit of $40 million.
The offer expects to raise up to $95.66 million for use by the company to fund the cost of listing and for working capital purposes.
Jetcon started operation 1994 to import used cars from Japan for resale in Jamaica.

Filed Under: Initial Public Offers, Stock Market Tagged With: Iron Rock, Jetcon Corporation, junior market

Iron Rock IPO hits market shortly

February 12, 2016 by IC Insider.com

Iron Rock Insurance is one of 5 junior market companies poised to hit the market between February and March, ahead of the deadline for the ending of the tax break, accorded junior market companies.
Iron Rock is expected to be capitalized at just under $500 million and has as two of its principals William McConnell formerly managing director of Lascelles deMercado who use to own Globe Insurance Company and Evan Thwaites former of Globe Insurance.
Informed sources tell IC Insider that the prospectus should be out by the February 22, with the issue to be opened before the end of the month.
Mayberry Investments are the brokers for Iron Rock while JMMB Securities is handling two issues. The new listings if they are all approved, will raise the number of junior market listings to 34 and the number of companies listed to 30. In contrast the main market and the US dollar market has 35 companies listed plus a number of preference shares issued by companies with ordinary share listing.
The main market has almost stagnated and seems set to contract with two main market companies, that of Hardware and Lumber and Desnoes and Geddes look set to be delisted.

Filed Under: Company News, General Business News, Initial Public Offers, Stock Market Tagged With: Desnoes and Geddes’, Globe Insurance Company, Hardware and Lumber, Iron Rock, JMMB Securities, Lascelles deMercado, Mayberry Investments, William McConnell

2 new listings for JSE on Thursday

January 5, 2016 by IC Insider.com

The junior market will have two new listings when trading commences on Thursday, with the technology based tTech and the air conditioners – CAC 2000 being added to the fledgling market for up and coming small companies, following successful IPO offerings. The listings were approved today by the Jamaica Stock Exchange.
IC Insider expects tTech to trade at an attractive premium to the IPO price of $2.50 based on the level of oversubscription and the low valuation of the IPO price, while CAC should trade close to its offer price of $4.85, based on the high valuation placed on the IPO price.
Both companies went to the market on December 16 to raise additional capital and obtained all they went for. tTech which went for $50 million with 25.65 million shares but the issue attracted 289 applications, valued at approximately $172.395 million and CAC was over by 10 percent in excess of the 29,032,258 ordinary shares on offer to bring in $120,545,327 that was targeted.
The listings will lift the junior market to 29 securities with 25 of them being ordinary shares.

Filed Under: Breaking News, Initial Public Offers, Stock Market Tagged With: Jamaica Stock Exchange

Near 20% tTech shareholders

December 30, 2015 by IC Insider.com

tTEch’s the technology company that offered shares to the public in December has released details of the successful offer of 25,652,000 ordinary shares at $2.50 each that closed on December 16, 2015.
The issue attracted 289 applications, valued at approximately $172.395 million.
Based on the level of oversubscription, applications for the general pool (57 percent of the shares offered) will receive 100 percent up to 10,000 shares applied for and the remaining shares will be allocated on a proportional basis equivalent to approximately 19.96 percent of the total application amount. Reserve share applicants (35 percent of the shares offered) will receive 100 percent of the number of shares they applied for.
The shares are expected to be listed on the junior market of the Jamaica Stock Exchange in January.

Filed Under: Breaking News, Initial Public Offers, Stock Market Tagged With: junior market, tTech

tTech to refund JCSD fees

December 21, 2015 by IC Insider.com

Subscribers to the initial public offering of the tTech shares who did not pay the JCSD fee of $134 with their applications will not be required to pay the amount and investors who actually paid will be refunded in full, Ramon Pitter of NCB Capital Markets, brokers to the issue informed IC Insider today.
Pitter said management agreed to the proposal from the brokerage house of the position recommended to them.
IC Insider learnt that the level of subscription was higher than first disclosed that the level of oversubscription now stands at close to 400 percent. Allocation of the shares has not been fully determined, Pitter indicates that all successful applicants will get at least the minimum of 5,000, with amounts over that amount to be determined when the final numbers have been agreed. The allocations should be know before Christmas with trading likely to commence before the year closes.
CAC 2000 public issue which was closed on Friday, is said to be over the amount by mid-day of Friday. The level of oversubscription was unknown earlier today, but seems not to be heavily over, with closer on the same day but ahead of the official closing date of Wednesday December 23.