Sagicor snaps up another Alliance company

Sagicor Investments signs a definitive agreement to purchase the securities dealer book of business of Alliance Investment Management, a release to the Jamaica Stock Exchange by Sagicor Group stated.
Sagicor Group & PanJam hit new closing highs.Sagicor Group subsidiary, Sagicor Investments entered into a definitive agreement for the purchase of the securities dealer book of business of Alliance Investment Management. The purchase, which is subject to due diligence, is expected to be completed over the next two months. Sagicor Group President and CEO, Christopher Zacca stated that “this latest acquisition of the AIML book of business will further expand SIJL’s client base and allow us to offer the best possible service and investment returns to our new investment clients.”
This news comes on the heels of the Sagicor Group purchase of 100% of the shares in Alliance Financial Services and would have been encouraged by the reputational damage emanating from the debacle with their principals and the country’s central bank.

Alliance get licenses back

Alliance Financial Services (AFSL) which has been acquired by Sagicor Group got back licensed to offer cambio and remittance services at approved locations a release from Jamaica’s central bank Bank of Jamaica advises. 
The release from the central bank stated that under the new ownership structure, AFSL has satisfied the Bank’s due diligence requirements.
Alliance was acquired after Bank of Jamaica suspended the company’s licenses to operate the above services under the former ownership.

Earnings projections wanted for all IPOs

FESCO may have computed the projection of income and profit to 2025 incorrectly by overstating some expenses but they are on the right track and must be commended for including the forecast in their prospectus, a very useful addition.
This publication has been rightly calling for all prospectuses to include forecasts of income and profits for three years at a minimum, but prior to the FESCO issue only new companies have been doing so. The lack of forecast is a disservice to the investing public.
The Alliance Financial Services prospectus released to the public in December does not contain any forecast of revenues and profit so was the case for Tropical Battery in late 2020 as such, FESCO decision to include a forecast maybe just a voluntary exercise rather than a standard for the industry that investors can look forward to.
Management who are responsible for the contents of prospectuses has much more information about a company’s future than the investing public. Since markets depend on good and timely information to thrive, the lack of forecast in all prospectuses is a disservice to the capital market and investors. To ask new starts up companies to provide a forecast of the future and not more mature companies who are in a better position to do so defiles logic.
Stockbrokers taking companies public should help to raise the standard by putting forecast in all prospectuses for the benefit of the market development and the Jamaica Stock Exchange should insist on it and so raise the standard of information going to the public.

Alliance IPO is now

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Shareholders of Alliance Financial Services will offer later this month just over 1.25 billion shares to the public for purchase at $1.59 each, for a total consideration of $1.99 billion.
The Invitation opens at 9 am on December 28 and will close at 4 pm January 11, subject to the Selling Shareholders’ right to close the issue at any time after it on the Opening Date once the shares are fully subscribed.
During its sixteen (16) years of operation, the company has grown to become a notable Cambio and remittance service provider in Jamaica.
The company reported a $709 million profit for the year to September 2020, from revenues of $1.5 billion. The 2020 profit equates to earnings per share of 11.3 cents for a PE of 14 but using the 2019 earnings the PE would have been 12.7, with both below the Jamaica Stock Exchange Main Market average of 17.
JMMB Securities are brokers for the offer.