The shares of Dolla Financial that was the subject of an Initial Public Offering will be listed on the Jamaica Stock Exchange Junior Market on Wednesday morning after increasing the number of shareholders to 14,981 as a result of the IPO.
The stock offered to the market at $1 each was heavily oversubscribed, with investors getting around four percent on average of the shares applied from the Public Pool. This publication expects moderate trading on the opening day with the price set to hit $1.30 but should see pretty spirited trading on Thursday when the price could well exceed the usual 30 percent one day limitation for price movement.
Around 40,000 applicants were received for the issue, of 500 million shares, information gleaned from persons close to the issue. The trading symbol will be Dolla, the same as the name.
Dolla list Wednesday
Public gets few Dollas for their effort
Public stock issues continue to deliver miniscule amounts to investors, but more so for those who are not accorded preferential status by the offering company.
The latest IPO by Dolla Financial falls well into the above category with the general public getting up to 10,000 shares plus a pro-rata allocation of approximately 2.50 percent of the excess shares for which they applied, this contrast with applicants in the Key Partner Reserve Pool who will receive a full allotment.
At the same time, applicants in the Company Reserve Pool will receive up to the first 8,500,000 shares, plus approximately 2.49 percent of the excess shares which was applied for above the Company Reserve Pool Base Allotment.
Refunds for amounts in excess of the cost of allotment will commence on June 8 and will be made to the broker account provided by applicants.
Dolla shares could list on Friday
Trading in the shares of Dolla Financial that offered shares to the public in an initial stock offering that closed on the same day it was opened could be listed on Friday on the Junior Market of the Jamaica Stock Exchange, a source informed ICInsider.com.
Details of the allocation are expected to be released by the close of the Jamaica Stock Exchange on Monday, the source advised.
Some $10 billion is said to have chased after the 500 million shares at $1 each, as such investors will end up, on average, with approximately 5 percent of the amount applied for.
The issue that was very popular closed at 4.30 on Friday, May 27, having been heavily oversubscribed. The shares are expected to more than double, based on the earnings for the first quarter to March this year, with a profit before tax of $66 million, up from $17 million in 2021.
The company reported an audited profit of $129 million after taxation of $38 million for 2021, from revenues of $379 million and ended with shareholders’ equity of $315 billion.
$250 million of the funds raised in the offer, net of the cost of the IPO, will be used in the business to fund loan growth.
Paramount Trading joins ICTOP10
Dolla Financial Services IPO was heavily oversubscribed, and it is unlikely that investors will be able to buy the stock in the secondary market at a price that would place it in the TOP10 after day two of listing. Accordingly, the stock has been moved to the sideline, but it seems set to reach the $3 region sometime after listing.
The shifting of Dolla Financial out of the TOP10 resulted in Paramount Trading entering the TOP10 with the price falling to $1.75 in a week that saw investors selling stocks to raise funds to get into the IPO issue.
The past week was volatile, with the Junior Market index dropping more than 330 points or 7.6 percent from the close of the previous week to Wednesday, as investors sought funds to go into the Dolla IPO. The selloff was visible from May 12 with a near 100 points fall on that day as there was talk in the market of the pending issue.
This week’s pullback of the market resulted in mostly declines in the TOP10 Junior Market stocks. Medical Disposables dropped 13 percent to $7, while Access Financial also dropped 13 percent to close at $20, Elite Diagnostic slipped 9 percent in closing at $3.60 and Lasco Financial dipped 7 percent to $3.30.
For the TOP10 Main Market stocks, Berger Paints fell 13 percent to $10.63; Radio Jamaica declined 11 percent to $2.55, VM Investments lost 7 percent, followed by QWI Investments down 6 percent to 85 cents. There were no meaningful gains.
During the week, General Accident reported first quarter results with profit due to shareholders of the parent company rising 36 percent to $49 million, Friday after trading, Lasco Distributors reported profit increasing 12 percent for the full year to $1 billion but the final quarter being up 35 percent to $241 million and Lasco Manufacturing rising 45 percent in the March quarter to $522 million and the full year up 24 percent to $1.7 billion.ICInsider.com upgraded earnings for Lasco Distributors to 50 cents from 45 cents, but the others remain as previously stated. All three stocks are trading below ten times 2022 earnings and therefore have huge potential to appreciate.
Results for Access Financial and Medical Disposables to March are awaited.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 14.4, while the Junior Market PE for the Top 10 sits at 5.9 versus the market at 13.1. The Junior Market TOP10 is projected to gain an average of 245 percent to May 2023 and the Main Market 241 percent.
Watch these stocks that sit just outside the TOP10 that investors should watch. They include Key Insurance, followed by Caribbean Producers and Scotia Group from the Main Market. In the Junior Market, Iron Rock Insurance, Dolphin Cove, Jetcon Corporation, Stationery and Office Supplies and Lasco Manufacturingreported strong fourth quarter results to March this year.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023. They are ranked in order of potential gains, based on the possible increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
$10 billion chased Dolla IPO
Some $10 billion is said to have chased after the 500 million shares at $1 each, offered in the Initial Public offer in Dolla Financial from approximately 10,000 applications, ICInsider.com has been advised by persons who would be in a place to know.
This could mean that each applicant may end up with an average of approximately eight percent of which they applied if over 40,000 shares.
The issue that was clearly very popular and oversubscribed closed at 4.30 on Friday, the same day of opening.
The shares are slated for listing on the Junior Market of the Jamaica Stock Exchange and are expected to more than double based on the earnings for the first quarter to March this year, with profit before tax of $66 million up from $17 million in 2021 and the high level of oversubscription.
The company reported an audited profit of $129 million after taxation of $38 million for 2021, from revenues of $379 million and ended with shareholders’ equity of $315 billion.
Dolla IPO oversubscribed and closed
The Initial Public offer of shares in Dolla Financial was oversubscribed and closed at 4.30 on Friday, the same day that the issue opened.
The issue comprised 500 million shares of $1 each with the shares slated for listing on the Junior Market of the Jamaica Stock Exchange. A very popular issue that is expected to be heavily oversubscribed, with the stock expected to more than double based on the earnings for the first quarter to March this year, with profit before tax of $66 million up from $17 million in 2021.
When listed it will bring the total Junior Market listings to 46, with three listings for the year to date and the total number of ordinary shares to be listed on that market to 50, with one failure and three migrating to the Main Market.
Across the board sell off to fund Dolla IPO
Following the closure of the Jamaica Stock Exchange for Monday’s public holiday, investors came out in force on Tuesday, slashing stock prices across the board, following the release of the attractively priced Dolla Financial IPO slated for listing on the Junior Market of the Jamaica Stock Exchange. In the process, the JSE Combined Index dived 8,171.28 points or 2 percent to 397,427.68.
The All Jamaican Composite Index dived 7,520.59 points to 442,250.18, the JSE Main Index shed 6,564.71 points to close at 385,333.83, the Junior Market dropped just 5.52 percent with a dive of 228.07 points to 4,129.74 and the JSE USD market index rose 0.35 points to 210.32.
Investors exchanged 28,306,948 shares in all markets, with the value of stocks traded in the Main and Junior Markets amounting to a mere $187.7 million and in the JSE USD market, US$48,070.
The market’s PE ratio ended at 23.6 based on 2021-22 earnings and 12.7 times those for 2022-23 at the close of the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Dolla Financial joins ICTOP10
The next stock slated to list on the Junior Market of the Jamaica Stock Exchange, Dolla Financial Services, joins ICTOP110 at the number one spot, with 2022 earnings projected at 20 cents per share and potential gains for the stock of 300 percent. The issue opens on Friday, 27 and 500 million shares being offered should be fully taken up by the public.
The other stock to climb into the ICTOP10 this week is Lasco Distributors, back in at the number 10 spot.
The markets pulled back this week, resulting in mixed performances for ICTOP10 stocks. In the Junior Market, following the release of March quarter results, Jetcon Corporation jumped 16 percent for the week to lead the Junior Market performances, Medical Disposables posted a 10 percent rise to $8, Access Financial gained 8 percent, while Caribbean Assurance Brokers lost13 percent in closing at $2.25 to be the only significant loser. TOP10 Main Market stocks had no meaningful gains. At the same time, Productive Business Solutions fell 17 percent to 98 US cents, VM Investments lost 9 percent and Radio Jamaica fell 5 percent, followed by JMMB Group with a 4 percent decline.
There were no movements in and out of the ICInsider.com TOP10 Main Market listing this week, but the Junior Market has two, with Dolphin Cove and Jetcon Corporation dropping out.
Investors should be on the lookout for companies with March year end that have not yet reported earnings. Amongst the grouping is the three Lasco companies that could get price moving punch from the results. Watch also Access and Medical Disposables, with the latter sitting close to the TOP of the list.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15, while the Junior Market PE for the Top 10 sits at 6.1 versus the market at 13.5. The Junior Market TOP10 is projected to gain an average of 226 percent by May 2023 and the Main Market 215 percent.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market.
ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023. They are ranked in order of potential gains, based on the possible increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
$1 for Dolla IPO
The latest IPO for a Junior Market listing is now out, with Dolla Financial Services, a company that is involved in the business of short term lending, with is set to sell 500 million Ordinary Shares at $1 each to the public, with the offer including 250 million newly issued Ordinary shares and the sale of 250 million existing Ordinary Shares by the Selling shareholders.
The 2021 financial statements show a total income of $395 million and a profit of $168 million before tax. Currently, the number of issued shares is 2.25 billion units, with earnings per share of 7 cents per share. Results for March 2022 show revenues of $141 million compared to $64 million in 2021, with a profit of $66 million, up from $17 million in 2021. For the full year earnings should hit the $300 million mark with earnings per share of 20 cents per share with a PE ratio of 5, compared to 13 for the overall Junior Market.
The Company intends to use the anticipated proceeds of the invitation of $250 million to expand its loan portfolio regionally through acquisitions and organic growth and strengthen its capital base. It currently operates eight branches in Jamaica and one in Guyana and has an equity base of $373 million, the issue if successful will take equity to just over $600 million.
The issue opens on May 27, 2022. Victoria Mutual Wealth Management, the receiving agent for the purposes of the Invitation.
