Image Plus crashed on launch

Image Plus Consultants share crashed on launch after listing on Friday morning on the Junior Market of the Jamaica Stock after the price reached a high of $2.25 with 104.4 million units trading in the early morning session.

Dr. Karlene McDonnough – Chairman of Image Plus Consultants Ltd.

The price fell back to just over the IPO issue price of $2 after 90 minutes and traded up to $2.20 after more than two hours of trading. Within a few minutes after midday, investors exchange slightly more than 9.8 million shares, with the last traded price of $2.09.
The listing brings the total number of companies on the Junior Market to a record 48. The shares will be amongst the few IPOs since the covid9 pandemic that failed to rocket higher on the first day of trading.
The company offered 247,889,936 new shares to the public at $2 each, to raise $495,779,872 before expenses, with the offer that opened on December 28 and closed on December 30, last year and was oversubscribed.
Applications from Key Stakeholders, Broker Reserved and Employees got full of the amount applied for, with the General Public getting the first 10,000 New Shares applied for and 35.68 percent of the balance.

Image Plus Consultants IPO looks attractive but…

Yet another company is heading to the Junior Market of the Jamaica Stock Exchange on the heels of the recent successful Regency Petroleum public issue that culminated in a listing on Thursday. The prospectus of Image Plus Consultants limited offers up to 247.89 million new ordinary shares at the price of $2 each, projected to raise $495,779,872 before expenses and to list on the Junior Market.
The issue will amount to 20 percent of the increased share capital of 1.2394 billion shares, up from 991.56 million currently issued. The offer values the company at $2.5 billion and that should rise to around $5 billion sometime after listing.
The issue opens on December 28 and is slated to close on January 11, but should close on the same date of opening or soon thereafter. Based on recent IPOS, if $5 billion goes into the Public allocation, investors can expect to get around eight percent of the offered amount.
Image Plus Consultants Services owns and operates the 25 years old Apex Radiology a Medical Imaging Company that was established in 1996.  Services provided include multiple modalities such as X-Ray, Ultrasound, CT Scan, Fluoroscopy and Nuclear Medicine at three locations in Kingston and one in Ocho Rios. The prospectus states that “With a view to growing at a faster pace, the Board took the decision to employ professional management experience and recruited a Chief Executive Officer in late January 2020. That step has resulted in very evident benefits demonstrated by the significant increases in patient cases, revenue and net profit margin over the last thirty months.”
Shareholders’ equity of $267 million in February 2022 was up 55 percent over the previous year and moved to $362 million in August. Profits before tax of $113 million increased 318 percent over the fiscal year to February 2021, representing the return of equity of 43 percent that flowed from revenues of $778 million which was up 10 percent over the prior year.
Total assets stood at $619 million at the end of August this year. Current assets ended the half year at $325 million and include receivables of $248 million that climbed from just $99 million at the end of August last year and from $139 million at the end of February this year. Current liabilities amount to $$124 million, while borrowed funds ended at $132 million.

Dr. Karlene McDonnough – Chairman of Image Plus Consultants Ltd.

Results to August show revenues and profits growing with revenues up 53 percent to $555 million from $363 million in 2021 with profit before tax of $153 million up 237 percent above the 2021 outcome of $45 million. Prior to the current year directors’ fees were paid at a higher rate than normal but are expected to reflect market rates going forward as a result the $66.5 million expensed in 2022 will drop sharply in the fiscal year 2023 and should result in a fall in administrative expenses.
“The Company intends to use funds raised to strategically and sustainably grow the business by acquiring property to be identified in Kingston which is suitable to relocate our largest operations, thereby ensuring control of our revenue and allowing for even further expansion of our offerings. Procuring suitable new bio-medical equipment to offer additional diagnostic modalities at our Ocho Rios location. Expand our offering of interventional procedures, maximizing this fast growing area of diagnostic imaging” the prospectus states.

The PE ratio will be just 7 times current year’s earnings and puts the stock in a strong position to move towards $6 during 2023. A comparison with Elite Diagnostic makes for interesting reading. While the reported profit is better for Image Plus, most other measures are in favour of Elite. The best comparison is EBITDA which shows Image with $152 million versus Elite with $190 million for the 2022 fiscal year. The interim figures annualized show Image with $359 million versus Elite with $220 million for the 2023 fiscal year. At $2 per share for the Image IPO, the stock is priced at 5.6 times EBITDA and Elite trades around 5.3 times. With three locations Elite net fixed assets amount to $885 million versus Image with $279 million and resulting in Depreciation charge being more than three times that of Image with four locations and higher finance costs as well.
If listed, the company would be the second such entity of the exchange following Elite Diagnostic. A successful IPO will raise the Junior Market listings to 48 and the total to list on that market to 52, including three that migrated to the Main Market and one that failed.
The board of directors is dominated by doctors in the medical profession and could do with some other directors with wide-ranging business experience. The directors are Karlene McDonnough, Lilieth Bridgewater, Gordon Bradshaw, Steve Lewis, Marian Vaughn and Leon Vaughn all medical-related doctors, Carolyn DaCosta, Jacqueline Leckie and Kisha Anderson.

Image Plus Consultants the next IPO

Yet another company is heading to list on the Jamaica Stock Exchange and is coming on the heels of Regency Petroleum that was listed on Thursday. Image Plus Consultants Limited announced its intention to go public and that seems imminent with the Junior Market seems the most likely target.
Image Plus Consultants Services owns and operates the 25 years old Apex Radiology a Medical Imaging Company that was established in 1996.  Services provided include multiple modalities such as X-Ray, Ultrasound, CT Scan, Fluoroscopy and Nuclear Medicine at three locations in Kingston and one in Ocho Rios.
According to an advertisement in the newspapers, shareholder’s equity stood at $267 million in February 2022 and was up 55 percent over the previous year, with profits before tax of $113 million that increasing by 318 percent over 2021, representing the return of equity of 43 percent that flowed from revenue of $778 million which was up 10 percent over the prior year. Total assets amounted to $447 million at the end of February this year.
Based on the profit, the company’s market value is just over $2 billion after the shares are listed.
If listed the company would be the second such entity of the exchange following Elite Diagnostic. A successful IPO will raise the Junior Market listings to 48.

About 5.3% of Regency IPO shares for the Public

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Initial public share issues continue to disappoint many investors, with investors in the Regency Petroleum issue allocated the first 10,000 shares applied for plus approximately 5.3% thereafter, a release from the lead broker, GK Capital Management, stated. 
Strategic Partners, Employees and applicants converting loans got a full allocation of amounts applied for, the report also indicated.
Applications in the general pool with the same JCSD number were consolidated and treated as one.
The prospectus indicates that listing of the shares is expected to take place within 21 days of the closing of the issue, with ten days elapsing since the issue closed on November 25, the listing should take place before the end of next week.
A total of 287,157,354 Ordinary Shares were for sale at $1 each, with only 115,196,354 shares that were available to the public.

Regency IPO opens next week

Another Junior Market listing now looms on the horizon with Regency Petroleum Co. Limited based on Westmoreland offering up to 287,157,354 Ordinary Shares for sale at $1 each. The offer opens on Thursday, November 24 and should bring the total junior Market listings to 48 and the number of companies to 47.
Only 115,196,354 shares will be available for subscription by the public, with the rest of 171,961,000 shares reserved as follows – 55.5 million for Employees & Key Strategic Partners, 100 million for GK Investments to convert loan balance and 16.46 million for Associates Loan Conversion.
The company half year results to June show revenues of $332 million up from $248 million in 2021 with profit after tax of $51 million versus $35 million in 2021 and put the earnings per share for this year at 98 cents, with the PE at 10 times this year’s pretax earnings versus the Junior Market average of just over 12, but below the peak of recent new issues of 15 to 20. ICInsider.com expects the offer to close quickly after opening.
Revenues in 2021 amounted to $607 million compared with $194 million in 2020 and just $45 million in 2019, with a profit of $59 million in 2021 after taxation of $18 million up from $14 million with tax or $3 million in 2020.
The company’s operations span Jamaica as a petroleum marketing company licensed to distribute bulk petroleum products. The company was founded by Andrew Williams, Chief Executive Officer. Revenues are currently generated revenue from sales of LPG Cooking Gas, Automotive Petroleum and Transportation of gasoline.
Shareholders’ Equity amounts to $111 million at the end of June this year.

Cari-Med heading for Jamaica Stock Exchange

Word on the street is that the Cari-Med Group is preparing for listing on the Jamaica Stock Exchange, with all probability that this will take place by early 2023 ICInsider.com has been reliably informed.
The company was launched in 1986 as Cari-Med Limited, a small pharmaceutical distribution company, by Glen and Marva Christian.
“The Group has an excellent reputation in the market and is the dominant pharmaceutical company in the country”, one source informed ICInsdier.com.
The Group represents and distributes Lysol, Harpic, Gillette, Duracell, Wrigley, Scotch Brite, Ensure and Purina, to name some of the products they manage.
In 2020 a restructuring of the companies within the Group resulted in Cari-Med being renamed Cari-Med Group, the parent company of the Group.
Marketing activities are organized under three divisions, Consumer and pharmaceuticals, with the third being medical supplies, Hospital, Medical Equipment and Disposables, staffed by sales and marketing personnel teams.
The Group serves markets across the Caribbean region with exports of its home brands such as Lullabye baby products, BemStar Adult Diapers, and the KenClean line of laundry products.
The Group invested more than $6 billion in the development of a distribution centre in St. Catherine to house a 258,000-square-foot facility on land along Salt Pond Road in Bernard Lodge to house the warehouses and administrative offices of the Consumer Goods Division.

CariMed and NCB Capital Markets staff at the signing of an agreement appointing the brokerage house as financial advisers.

Cari-Med employs over 900 employees has been with the company website indicates. Dun & Bradstreet put revenues for the Group at Cari-Med at US$37 million and Kirk Distributors at US$38 million and the Cari-Med building in New Kingston is said to generate rental income of US$20. But one source is of the view that the revenues in the distribution may be closer to J$15 billion, which could deliver a profit of around $600 to $700 million, but the financial cost to build out the warehouse may result in net profit being trimmed below this level.
NCB Capital Markets is the broker for the issue.

Heavy demand for ONE on ONE

OneonOne Education Services is now listed with heavy demand at $1.30 currently from 302 bids total bids at $1.30 for 15.8 million shares.
The bids are now at $1.30, the maximum it can trade at in the first hour of trading and after that $1.32 the maximum for the day, offers are effectively in at $1.30 and over
The stocks appear to be heading for the $2 range by early next week as buyers jostle to pick up stocks. The stocks went to market in early August to sell 380 million units up to $1 each and the issue was heavily oversubscribed.
Trading will commence at 9:30 and trading in the stocks will be suspended immediately after opening and will resume an hour time after.
After the trading commenced investors exchanged just 14,238 shares at $1.30 leaving 16.58 million units on the bid at $1.30 with trading in the stocks halted until 10.30 am.

1on1 Junior Market 50th listing

Ricardo Allen CEO of One to One

Trading in ONEonONE Educational Services shares will commence today on the Junior Market of the Jamaica Stock Exchange after a successful Initial Public offer of 380 million shares up to $1 each at the beginning of August.
The listing will bring the number of Junior Market companies to 46 and it will be the 100th listed company on the Jamaica Stock Exchange. It will also represent the 50th company to list on the Junior Market since the first listing of Access Financial Services in 2010.
Sweet River Abattoir was delisted after failing financially and Eppley, Key insurance and Caribbean Producer migrated to the Main Market.
The stock is expected to trade at the maximum price permissible today at $1.32 and $1.74 on Friday providing it closed today at $1.32.

Public gets 2% of IPO share-allocation

The pull of initial public offers continues with some 15,000 applicants going after the One on One Educational Services public share issue of 380 million Ordinary Shares resulting in the general public getting, on average, just over 2.2 percent of shares applied for.
Based on the prospectus, the stock should be listed within one week of the closing date. Accordingly, the shares should be listed this coming week on the Junior Market of the Jamaica Stock Exchange and should be greeted by strong buying interest that seems set to push the price to the two dollar region. One on One will bring the companies listed on the Junior Market to 46 and will be the 50th company to list on the Junior Market since the commencement of that market in 2010, when Access Financial was listed as the first. It will be the 100 companies listed on the Jamaica Stock Exchange.
General Pool received the first 5,000 units plus a pro-rata allocation of approximately 2.23 percent of the excess.

Ricardo Allen CEO of One to One

Investors in the Convertible Loan Conversion and the Key Strategic Partners pools received a full allocation of the shares. Applicants in the Sagicor Pool received the first 450,000 units plus a pro-rata allocation of approximately 1.11 percent of the balance of the excess. Teachers and Trainers got the first 80,000 units plus a pro-rata share of around 3.47 percent of the excess applied for. Applicants in the Employees Pool receive the first 500,000 units plus a pro-rata allocation of approximately 69.83 percent of the rest.
A total of 108.75 million shares were allocated to the owners of Convertible Loans at 80 cents each, 60 million shares for the Key Strategic Partners, 30 million units each for the Sagicor reserve Pool, the Teachers and Trainers Pool and the Employees Reserve Share Pool and 121.25 million shares for the general public at $1 per share.

Dolla list Wednesday

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.