NCB Capital Markets advised that the invitation for subscription of 600 million shares with an option to upsize to 900 million units by QWI Investments closed on Wednesday morning.
The share offer was by way of a prospectus dated September 9, 2019, in respect of ordinary shares at the price of $1.35 to the general public, with shares reserved at discounted prices of $1.20 and $1.25 for some investors. The issue attracted more than 4,134 applicants but more than 4,550 applications for an estimated $1.5 billion at an interim count stage with a number of persons who wanted to buy in not being able to do so. With the level of oversubscription, the company exercised the option to upsize the issue to 900 million to raise just under $1.3 billion.
QWI Investments is an investment company that will be added to the JSE Financial Index JSE sources say.
IC Insider.com is reliably informed, that there are two pending IPOS coming to the market soon. JMMB Group and the Lumber Shop both sought and got approval from shareholders to arise added capital and these could be the next two to come but Tropical Battery should not be far off. There could be two others before the year closes.
QWI Investments IPO oversubscribed
5 hot summer IPOs
Initial public offers have been extremely popular amongst investors who have made good money from the vast majority of them. Come this summer investors will get five more opportunities to invest in IPOS.
The last issue, Wigton Windfarm made several thousands investors happy, with the price rising as high as 90 percent over the IPO price of 50 cents. Even now that it is trading lower than the peak, investors are still more than 40 percent up on the initial price. Investors in the year’s first IPO, iCreate are not that lucky as the $1.01 they paid for the stock fell as low as 70 cents since and remains well below the IPO price.
Coming this summer are, The Lab that styles itself as a fully integrated 100 percent Jamaican born and bred advertising agency with global reach and an island swagger.
Kimala Bennett is the company’s Managing Director. NCB Capital Markets are the brokers for The Lab, that could be looking at regional expansion. Clients include National Commercial Bank, JPS. Wendy’s Dominos, Supreme Ventures, Wray and Nephew, Grace Kennedy, Caribbean Broilers, Digicel. Persons in the know say this is one of those IPOs to plan for, as it is unique and profitable. NCB Capital Markets is also taking Eppley Property Fund, a company that owns property across the Caribbean, to market this summer as well as QWI Investments, a new company that invests in listed shares.
NCB Capital Markets is also brokers to Tropical Battery Company. The company expects to come to market in July, to raise around $200 million in an IPO our sources state. The company was founded in 1950 and later purchased by John Melville and remains in the family, since. The company’s core business is the sale of automotive batteries, complemented by the distribution of several local and world renowned automotive consumer brands. Tropical Battery’s headquarters is located in Kingston, with distribution centres in Kingston and Montego Bay.
Another that will be coming to market is Sagicor Select Funds Limited an Exchange Traded Fund that is going to market in June to raise $5 billion. The fund according to Sagicor Investment CEO, Kevin Donaldson, will track the JSE Financial Index and will be rebalanced if needed, monthly. Donaldson indicates that the fund currently has assets of $1.2 billion already. Sagicor Investments could have 2 to 3 additional listings before the year ends.
When completed, the new listings on the Jamaica Stock Exchange will raise the listed ordinary shares to more than 80 and total listings to more than 100 securities.
The Lab, coming to a broker near you
NCB Capital Markets is readying a number of new public share issues to come to market by the summer this year.
Numbered amongst them are, The Lab that styles itself as a fully integrated 100 percent Jamaican born and bred advertising agency with global reach and an island swagger. “We are a strategic, creative, passionate solutions oriented and no nonsense group with a heavy emphasis on getting stuff done.” Kimala Bennett is the company’s Managing Director. Clients include National Commercial Bank, JPS, Wendy’s, Dominos, Supreme Ventures, Wray and Nephew, Grace Kennedy, Caribbean Broiler and Digicel. Persons in the know say this is one of those IPOs to plan for, it unique and profitable. QWI Investments is another that NCB Capital Markets is readying to take to the Jamaica Stock Exchange main market by early summer.
Another that will be coming to market is Sagicor Select Funds Limited an Exchange Traded Fund. According to a note in the Sagicor Group audited financial statements, “It is the intention of the company to apply to the Board of the Jamaica Stock Exchange for admission of the shares to trading on the main market if subscriptions of at least $5 billion are raised.”
The above will come on top of the current public offer of Wigton Windfarm that opens next week to raise $5.5 billion, earmarked to be paid over to the government after expenses associated with the offer.
Up to $50m loan to buy Wigton shares
The Wigton IPO, is generating lots of interest, amongst Jamaicans, residing locally and overseas and should pull in around $6 billion before expenses for the sellers, PetroJam. It will be one of the larger issues, to hit the Jamaican capital market.
In addition to providing margin funding to assist in purchasing the new IPO issue, NCBCM online portal, dubbed ‘GoIPO’ and created in conjunction with the Jamaica Central Securities Depository , will be available for their investors to use in making application for the shares. The application will allow investors with accounts at NCBCM, to easily fill out application forms as the system will automatically populate the form with the other information for persons with login access codes.
The GoIPO was born out of the major challenges that NCB encountered when they brokered the Wisynco IPO.
Investors with login codes can use them to access NCB system and access accounts that will fund the application. The system will be show the Wigton IPO application from which the appropriate application form is to be fill out. The required information will be the sum being invested. The system will compute the number of shares being applied for and the applicant will identify the account that the funds will come from. Persons having no login code will have go online and fill in name, JSCD account number and TRN and enter the sum they are investing and method of payment as well as upload a photo ID to go with the application.
The new system will eliminate the need to visit a locations to deliver applications and significantly reduce errors associated with manual processing.
Of the GoIPO solution, platform is encrypted, providing security and confidentiality to users, who can access the digital portal once they have a JCSD number. Gooden said, too, that as selling agents of the IPO, NCBCM possesses the largest distribution channel within the broker space and clients who do not wish to apply digitally are encouraged to complete and return their forms to NCBCM locations islandwide.
NCBCM say that investors can apply through the NCB system to apply for shares to go into other brokerage accounts.
Seprod shares attract nearly 4,000 applicants
Many investors who applied for Seprod’s shares that were sold publicly in October will end up getting a relatively small allocation with nearly 4,000 applications chasing the 91.9 million Seprod shares that were offered for sale in October.
According to the release “Facey Group Offer of Seprod Ordinary Shares based on the broker’s preliminary numbers, the indication is that they received 3,799 applications.
“NCB Capital Markets advises and due to the large number of subscribers for the Offer, the process is taking longer than anticipated.” NCB Capital Markets advised that it is in the process of reconciling the applications and verifying payments received and has requested approval to provide the Basis of Allotment on Monday, November 12, 2018.
Based on the number of applications, the average allocation would be around 24,000 shares each but with NCBCM allocated 10 million units the average falls to 21,000 units however 45 million units were set aside for exiting Seprod’s shareholders, staff, current and past directors.
The shares that were offered for sale at $24 traded on the Jamaica Stock Exchange today at $39 each.
Stanley Motta list Wednesday
After more than a month from closing of initial public offering (IPO) in July, Stanley Motta will be listed on the main market of the Jamaica Stock Exchange on Wednesday.
The company successfully raised $4 billion from the sale of 757,818,862 ordinary shares to the public at $5.31 each. The shares will start trading after the listing of the company when trading commences at 9:30 in the morning. NCB Capital Markets, was the lead arranger and broker for the initial public offering that closed on July 20. The issue was just subscribed to, with NCB Capital Markets picking up a relatively small amount of the units.
The Stanley Motta own property at 58 Half Way Three Road in Kingston comprises 200,000 square feet rentable space, is said to be the Caribbean’s largest technology park, which is set to employ more than 5,000 Jamaicans within the Business Process Outsourcing (BPO) and technology industry, working for international brands like Alorica and Amazon.
Rental income for a full year is likely to be in the order of US$2.5 million with most expenses picked up by tenants, it should net out around the same amount tax free. The yield on investment will translate to just under 7 percent.
Motta shares fully allocated
According to a release from the brokers to the deal, the offer of reserve shares and those the general public were full allocated.
The Company intends to apply to the Jamaica Stock Exchange for the listing on the main market of the JSE of all the Shares and to make such application as soon as is conveniently possible following the close of the offer. The offer opened on July 6 and was scheduled to close on July 20, but an notice in Friday the 20th in the Daily Gleaner, disclosed that the issue was closed suggesting that the issue was fully taken up with minimal take up by the NCB Capital Markets as underwriters.
The offer covered 757 million shares with 227,348,547 reserved mostly for family members of the majority shareholders of the Musson Group and 529,970,315 units for the General Public for purchase at $5.31 per share, meant to raise $4 billion.