PBS & Express Catering over the top

NCB Capital Markets, brokers to the initial public offer of ordinary and preference shares for Productive Business Solutions which opened July 5, 2017 closed on Tuesday, July 11 for the Ordinary Shares at the price of US$0.55 per share.
The brokerage house, stated that the basis of allocation to be communicated later. The Invitation for subscription by the Company in respect of at a price of J$100 per share remains open and the public will be duly advised when same is closed. The original date for closure of both issues was set for July 26.
PBS issue was seeking to raise US$41.5 million by ordinary shares, with US$8.7 million of it to be used to International Finance Corporation. The IPO also includes 25,800,000 9.75% Redeemable Cumulative Preference Shares denominated in Jamaican dollars. The issue allocated 27,272,727 of the ordinary shares for Portland JSX, 7,272,727 units for staff with 4,545,455 shares for the General Public.
Part of the proceeds will be used to paid debt of US$17.45 million and working capital of US$13.85 million.

Ian Dear, Managing Director of Express Catering

For the year to December 2016, a loss of US$3.3 million was incurred down from a profit of $1.2 million in 2015. Revenues fell in both years to $171 million in 2016 from $194 million in 2015 and $202 million in 2014 when a small loss was incurred. Finance cost in 2016 increased by $2.6 million. The increase is attributed primarily to interest associated with the increase in debt of $998,000, FX loss of $920,000, and amortization of deferred expenses associated with the bond of $724,000. In the March 2017 quarter revenues rose to US$42.45 million from US$39.32 million with profit rising to US$838,000 before taxation of US$389,000 from a loss the year before.
PBS has borrowings of US$66 million with US$10 million due to related parties as at December 2016. The prospectus indicates that the shares are to be listed on the main market of the Jamaica Stock Exchange and on Barbados Stock Exchange’s International Securities Market, subsequent to listing in Jamaica.
Reports reaching IC Insider.com is that Express Catering was oversubscribed with the issue closing this morning as more than 1,000 applications were received by the broker for the issue, Mayberry Investments. The 100 percent Shareholder of Express Catering, Margaritaville St Lucia, offered 327,500,000 of existing shares for sale at $1.50 each, to raise approximately $490 million. Only 32.6 million shares were made available to the general public. The Stock is slated for listing on the Junior Market.

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.

Eppley preference shares over

30th November, 2013 | Eppley Limited announced that a total of 303 applications were received for the recent public offer of 50 million preference shares valued at approximately J$361.95 million.

As the Invitation was oversubscribed, the Company intends to exercise its right to issue further preference shares by allotting 60,325,600 to all applicants who will receive 100% of the amount of the Shares they applied for.

28th November, 2013 | Eppley’s Invitation for Subscription to 50 million Cumulative Redeemable 9.5% Preference Shares at J$6.00 each has been oversubscribed the company reported today.

The offer opened on Wednesday, 13th November 2013 and was closed on the closing date, Wednesday, 27 November 2013.

The Company had reserved the right to make available further Preference Shares prior to the Closing Date but IC Insider understands that this option was not exercised.

Related posts | Profit up 92% for Eppley

JPSCO list new preference shares

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The Jamaica Public Service listed its new offering of 2,455,607 units of Class F 9.5% Cumulative Non-Redeemable Preference Shares on the Jamaica Stock Exchange. The shares were offered through a private placement. The shares will be traded under the symbol JPS9.5. The security has a market capitalization of $2.579 billion or 33.0% of the overall market capital of the preference shares listed.

Street Forrest, General Manager of the JSE told the audience that, “The JSE welcomes these new securities as we believe if we are to encourage investors to invest in the development of our country, we have to provide them with not only a transparent and efficient marketplace through which to invest but the products in which to invest. Ownership by Jamaicans in Jamaican companies, whether through ordinary shares or preference shares, is a critical path in improving the infrastructure leading to sustainable development. This is what the Stock Exchange seeks to foster through the different markets that we operate. We are committed to the development of the capital market but we cannot do it alone.  The government and the private sector must see the need for the development and especially the formation of capital through equity financing”.

JPSMeter200x200Street Forrest went on to say “I wish to congratulate JPS again for listing. The very nature of these Class F shares, being non-redeemable has some characteristics of ordinary shares”.

Kelly Tomblin, CEO of JPS, stated that “JPS has been a part of the national landscape for more than 90 years, and a long standing partner in over 95% of households and businesses across Jamaica. We believe that it is appropriate for Jamaicans to have more personal stake in the company that plays such an important role in national development”.  She also promised that there will be other securities listed on the Exchange in the future by JPS.

CAC $150m Preference share issue

CAC 2000 Limited (formerly Carrier Air Condition) went to the market in July to raise $150,000,000 with the option to upsize depending on demand by way of one Dollar (J$1) for Five (5) years redeemable Preference Shares with maturity set for July 31, 2018.

A cumulative preferential dividend is at a fixed rate of 10% per annum for the first year and thereafter a variable rate of 2.5 percentage points above the weighted average yield rate applicable to the 6 month Jamaica Treasury Bill Tender (WATBY), held immediately prior to the commencement of each quarterly interest period, until maturity.

The net proceeds of the offer will be used by the Issuer to invest in the expansion of the Company and to provide working capital.

The Issuer reserves the right to redeem the Preference Shares on any dividend date after a period of two (2) years by giving the holders 90 days notice.

Victoria Mutual Wealth Management are the brokers to the issue,which is being done by private placement.

The issue, which was slated for closure on July 31, has been extended. As of September 13th, the issue said to be nearly taken up in full. Lack of a strong name recognition in the market may be hampering the full take up of the offer.

Related posts | Capital market is alive!

Mystic Mountain $500m Pref shares

In July, Mystic Mountain issued $500 million in 10.50 percent preference shares in a private placement. So how do they look financially? IC Insider got hold of some data to help investors understand what the operation is looking like. The funds raised are expected to cut borrowing cost, provide working capital and allow for expansion.

The company intends to apply to the Jamaica Stock Exchange for the listing of all of the Preference Shares by way of introduction and to make such application six months or as soon as conveniently possible after the closing of the Offer.

The company operates an attraction facility in Ocho Rios, Jamaica catering to all, but relying a great deal on foreign visitors to the island.

Information from the company states that “The Rainforest Sky Explorer is a chairlift ride which takes riders from the entrance to the heart of the action, 700 feet higher. The journey takes approximately 15 minutes each way and covers approximately 1.3 miles, giving riders superb views of the rainforest, the beautiful Caribbean Sea on the north coast of Jamaica and educational pictorial displays featuring Jamaican Olympian athletes that are set up at the top of the route.

Mystic MountainCHARTRFA is a British Virgin Islands registered corporation that, through its Hong Kong wholly owned subsidiary, is the majority owner of five ecotourism parks, two in Costa Rica, one with a management agreement in Mexico, one in St. Lucia, and Mystic Mountain in Jamaica. RFA owns 54.9 percent of Mystic Mountain. The remaining 45.1 percent is owned by Mike Drakulich, Norma Clarke and John Dalton. Additionally, the Company is planning to build a sixth park in St. Maarten and is in advanced negotiations to develop a seventh park in Rio de Janeiro.”

Profitability | Net profit for September 2012 amounted to US$1.186 million up from US$1,018 million in 2011 with profits being made in the last four years, the period that the company disclosed results for. Financial performance for 2nd quarter ended March this year and March 2012 showed operating revenues up to US$2.20 million, a US$179,000, or 7.5 percent decline compared to 2012. Direct operating expenses totalled US$940,000 in the quarter, a 10.4 percent or US$48,000 increase over the 2012 quarter. Administrative expense increased marginally by 3 percent from US$441,000 in the second quarter 2012 to US$455,000 this year. Finance costs fell from US$56,000 to US$40,000 in the second quarter this year compared to the similar period in 2012. Net Income declined by 34 percent or US$299,000 to US$580,000 in the quarter.

Revenues for the 2012 fiscal year amounted to US$7.146 million, an increase of 16 percent or $1 million over 2011 primarily as a result of an increase in visitors over the year. The compounded average growth rate (CAGR) for the 4 year period is 9 percent. Direct operating cost of US$2.40 million increased by 25 percent or US$500,000 compared to 2011, resulting in a gross profit of US$4.75 million for a 12 percent improvement over the previous year.

Operating expenses of US$3.36 million increased by 12 percent or US$358,000 relative to 2011, primarily as a result of increases in general operating expenses such as repair and maintenance and office expenses. Gross profit margin declined from 67 percent in 2011 to 66 percent in 2012. In 2009 gross profit margin was 74 percent.

Finance costs of US$205 thousand declined by US$27 thousand or by 12 percent relative to 2011 of US$232 thousand. Finance cost was reduced from a high of US$611 thousand in 2009.  Mystic has reduced its total borrowings from US$4.824 million to US$2.454 million in 2012 by paying down loans resulting in reduced interest cost.

Liquidity | As at September 30, 2012, the company had a current ratio of 1.05. This represents an increase of 22 percent of the liquidity position relative to 2011, in which the current ratio stood at 0.86. The level of equity to debt which was 110 percent in 2011 improved sharply to 160 percent in 2012.

The company’s working capital has been negative for the three years to 2012 and just went into the black in 2012.

JPS to raise capital in Jamaica

Jamaica Public Service Company is to raise more long term capital on the local market. The proposal is to increase the share capital by the addition thereto of 3,500,000 Class “F” and 1,500,000 Class “G” Preference Shares. It is proposed to list the shares on the Jamaica Stock Exchange. Accordingly, a resolution to this effect is also to be considered by directors.

The company has called an extraordinary meeting to approve the issue of two new preference shares and for shareholders to give authority to the directors or a committee of the directors to determine the terms that the shares are to be issued at. The meeting will be held at the Head Offices of Limited, 6 Knutsford Boulevard, Kingston on June 5, 2013, at 10 am.

The resolutions to be considered by the meeting are as follows:

1. RESOLVED as an ordinary resolution that the authorized share capital of the Company comprised of:

– 30,315,733,190 ordinary stock units; and – 567,000 7% Cumulative Preference Shares “B” ; and – 66,500 5% Cumulative Preference Shares “C” ; and – 1,049,000 5% Cumulative Preference Shares “D” ; and – 514,000 6% Cumulative Preference shares “E” be and hereby is increased by the addition thereto of 3,500,000 Class “F” Preference Shares and 1,500,000 Class “G” Preference Shares so that the share capital of the Company will be comprised as follows:

– 30,315,733,190 ordinary stock units; and – 567,000 7% Cumulative Preference Shares “B” ; and – 66,500 5% Cumulative Preference Shares “C”; and – 1,049,000 5% Cumulative Preference Shares “D”; and

– 514,000 6% Cumulative Preference shares “E” ; and – 3,500,000 Cumulative Non-redeemable  preference Shares “F” – 1,500,000 Cumulative Redeemable Preference Shares “G”

JPS_logo150x1502. FURTHER RESOLVED as an ordinary resolution that the Company be authorized to issue and/or allot Cumulative Non-redeemable Preference Shares “F” and/or Cumulative Redeemable Preference Shares “G” with rights/restrictions as to Voting, Dividends and Winding up and/or otherwise as may be determined by the Directors of the Company or a Committee of the Directors appointed for such purpose, subject always to the Articles of Incorporation of the Company, and that the Directors of the Company or such Committee be and are hereby authorised to determine all such rights and restrictions and the Directors be and are hereby authorized to allot such Cumulative Non-redeemable Preference Shares “F” Cumulative Redeemable Preference Shares “G” at such subscription price per Preference Share “F” and Preference Share “G” as the Directors of the Company or such Committee may deem fit, the same to investors accepting an invitation to subscribe for such Preference Shares “F” by way of private placement(s) of such Preference Shares “F” and/or Preference Shares “G”, or otherwise and on terms and conditions determined by the Directors of the Company, subject always to the Articles of Incorporation of the Company.