Eppley goes to Market again

eppleytype150x150Eppley goes to Market again, this time to raise between $150 million and up $250 million by way of an additional amount of the 2019 preference shares. The yield will initially be 10 percent for the first two years, with step of rates thereafter.
According to the company, “as a result of excessive demand for the cumulative redeemable preference shares of the Company due 2019 (the “2019 Preference Shares”) for which subscriptions were invited subject to a prospectus dated 4 November 2014, the Company now invites further Applications for subscription for 25,000,000 additional new 2019 Preference Shares in the capital of the Company”. JMMB Securities Limited is acting as lead broker and listing agent to the Company in the Invitation. The Company reserves the right to make available further 2019 Preference Shares prior to the Closing Date.
The Company reserves the right to issue up to 41,666,667- 2019 Preference Shares in the event that the Invitation is oversubscribed by applicants and on that basis the total consideration for the subscription of such shares would be greater than $150,000,000 but will not exceed $250,000,002. The issue opens on Tuesday 16 December and closes Tuesday 23 December 2014 with the shares being issued at $6 each.
The Company already has accepted applications for the issue of 58,333,334 – 2019 Preference Shares by way of prospectus dated 4 November 2014 however these shares have not yet been allotted and as such, at the date of this Prospectus there are no holders of the 2019 Preference Shares as yet. It is the intention of the Board that any 2019 Preference Shares for which Applications are made pursuant to this prospectus, or for which applications were successfully made pursuant to the earlier prospectus dated 4 November, will be allotted simultaneously by the Company. The shares are expected to be listed on the junior market of the Jamaica Stock Exchange.

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  1. […] Eppley is reporting a miniscule increase in profit after tax to reach $11.4 million for the December quarter and a 31 percent increase, to $51 million for 2014. The company that mainly does insurance premium financing, generated a 62 percent increase in revenues for the quarter to reach $43.8 million and a 68 percent increase for the year, landed revenues at $150.7 million. Expenses were climbing much faster than income, with interest cost climbing 196 percent in the quarter, hitting $16.9 million and 194 percent increase for the year to end at $48.7 million. The increase in interest cost squeezed margins on lending sharply as new funding received in the last quarter was only partially used to generate high yields. Administrative cost climbed 51 percent in the quarter and 50 percent for the year. Earnings per share rose to $66.61 per share for the year. At year end, cash funds not fully deployed amounted to $519 million up from $161 million at the end of 2013. Borrowing stood at $1.08 billion and equity at $343 million. A significant part of borrowings is quasi equity, in the form of preference shares, moving borrowings from $395 million at the end of September to what it ended at, in December. Amounts lent out totalled $843 million, up from $595 million in 2013 and $689 million at the end of September. With the increased funding, Eppley should be able to increase business in 2015 and with that profits, as such earnings could be in the range of $100 per share for 2015. The stock is thinly traded and listed on the Jamaica Stock Exchange junior market and last traded at $380. […]

  2. […] with 14,798 shares changing hands at $1.15, Derrimon Trading had 100 shares trading at $2.04, Eppley 9.5% preference shares closed with 10,000 shares changing hands to close $6 and General Accident […]

  3. […] Eppley’s latest cumulative preference shares were listed on Wednesday, there was no trading in the stock. The listing flowed from the reopening of an issue which went to market in November and was oversubscribed and led to the reopening of the issue on in December on the same terms which includes interest at 10 percent for two years then a step up thereafter, the second was also oversubscribed. Activity Trading on the Junior Market closed with only 6 securities trading and ended with 929,121 units valued at $1,202,090. The JSE Junior Market Index rose 1.68 points to close at 690.29, with the price of 3 advancing and 1 falling. At the close of the market, there were 4 stocks with bids higher than their last selling prices and 2 stocks with offers that were lower. The junior market continues to show renewed interest with only 4 securities closing with no bids to buy. There were 9 securities that had no stocks being offered for sale. The stocks that traded on the day before Christmas are, Access Financial with 7,903 shares to gain 9 cents at $9.05, Lasco Financial traded just 2,000 shares at 1 cents higher at 98 cents, Lasco Manufacturing had 649,041 units trading to put on 1 cent to $1.12. Lasco Distributors with 258,877units suffered a 1 cent fall, to $1.44, Blue Power traded just 1,300 shares at $6.30 and Honey Bun saw trading in 10,000 shares at $1.70. […]