Increased buying interest coupled with the release of new results created many changes for the ICTOP10 listings this week. Tropical Battery came from nowhere, with stunning first quarter results to December, with profits surging from just $19 million in 2020 to $56.7 million as revenues surged 46.8 percent to $662 million and investors reacted to it right out of the block driving the price up 18 percent for the day.
Even with an 18 percent rise in the stock price, Tropical moved right to the top of the Junior Market TOP10 stocks with the potential to double in price. Medical Disposables price slipped with the stock now back in the TOP 10 and so did Access Financial while Cargo Handlers joins the TOP10 in fifth position.
Moving out of the TOP10 are Lasco Financial that was boosted by rising profits and enjoyed a 19 percent bounce in the price for the week and Jetcon Corporation. Lasco Manufacturing (Lasm) price rose 2 percent but the company posted good results that suggest a much higher stock price ahead and Stationery & Office Supplies (SOS) had a 24 percent rise to $7.31 as increased buying interest came in for the stock. Both stocks remain in the 2022 ICTOP15 list, with SOS in at the 6th spot and LASM at 11.
The Junior Market index upward move slowed this past week with year to date gains moving from 16.3 percent last week to 17.1 percent to Friday, this week. The Main Market seems to be bubbling with the market index up more than 7,700 points for February and is worth watching.
Recently listed Spur Tree Spices continues to consolidate around the $3 price level while, Future Energy, surged this past week to an all-time high of $5.20, on profit results that rose strongly in the December quarter at PE of 50, the price seems well ahead of the market.
Other decent moves in the Junior Market this past week are Caribbean Assurance Brokers that closed at $3.28 for a rise of 6 percent, General Accident moved up 4 percent to $6.76, AMG Packaging lost 6 percent to end at $3.48 and Honey Bun slipped 4 percent to $9.70.
In the Main Market, Jamaica Broilers rose 13 percent to $30.50, while Proven Investments and VM Investments both rose 8 percent for the week. Radio Jamaica released results for the nine months to December, with a slight reduction of 2.5 percent in revenues or $35 million leading to a fall in profit from $194 million in the December quarter to $108 million and Jamaica Broilers were replaced in the TOP10 by Berger Paints and Carreras.
The sharp price movements in the Junior Market over recent weeks reduced the potential gains markedly, with the average increase projected for the TOP 10 Junior Market stocks now at 105 percent and is now lower than the Main Market at 122 percent. The top three stocks in the Junior Market are Tropical Battery followed by Caribbean Assurance Brokers and Lasco Distributors to gain between 111 and 124 percent, compared to 114 and 126 percent, previously.
The potential gains for Main Market stocks moved from 123 percent to this weeks’ 122 percent, with the top three being JMMB Group followed by Guardian Holdings and Sygnus Credit Investments all projected to gain between 161 and 186 percent versus 165 and 186 percent last week.
After trading at a big discount to the Main Market for two years, the average PE for Junior Market has moved to 17.8 based on ICInsider.com’s 2021-22 earnings and is ahead of the JSE Main Market at 16.4. In the process, the Junior Market has surpassed the average of 17 that was achieved at the end of March last year. The TOP 10 stocks trade at a PE of a mere 9.8, with a 45 percent discount to that market’s average. That means there is a lot of room for the TOP10 stocks to run between now and the end of March.
All the stocks in the Junior Market can gain 12 percent to March this year, based on an average PE of 20 that would take the index to 4,700 points. About a third of Junior Market stocks with positive earnings are trading at or above this level, averaging around 23.
The average PE for the JSE Main Market is 17.4 just 9 percent less than the PE of 19 at the end of March and 15 percent below the target of 20 to March this year. The Main Market TOP 10 average PE is 9.2 representing a 47 percent discount to the market and well below the potential of 20. Around 15 stocks or 30 percent of the market trade at or above a PE of 19, with most over 20, for an average roundabout 25, suggesting that the accepted multiple is between 20 and 25 times the current year’s earnings.
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 March 2022 and 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 per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Several changes for ICTOP10 listings
More changes for ICTOP10 listings
The Junior Market closed at record highs on each of the last seven days, fueled by an upsurge in trading, with several days ending with all listed securities trading driving the volume and value traded upwards to levels not seen in months and resulting in several stocks reaching new 52 weeks’ highs.
The Main Market showed some bullishness this past week with the JSE All Jamaican Composite Index climbing 6,525.97 points to the highest level since late October last year. More than two thirds of the gains came on Friday helped by gains by heavyweights, Sagicor Group putting on $1, Scotia Group popping $1.60 and Wisynco jumping $2.25 after reporting strong increased profit for the December quarter.
The Junior Market Index is up a remarkable 16.3 percent for the year to Friday that is more than half of all of the 2021 gains, with the average rise in prices even greater at 19 percent. That quick upward movement is equivalent to an annualized gain of 194 percent and may result in investors questioning its sustainability.
Spur Tree Spices seems to have reached a peak for now but the previously last listed Junior Market stock, Future Energy, gained new life and sprinted to an all-time high of $4.50, no doubt driven by investors’ views that the increased price of gasoline will drive up sales and margins. While sales will rise in dollar terms margin may not. The party was not only for the gasoline supplier, Fontana in the TOP10 for the week ending the 21st of January at $7.40 hit new record highs this week up to $12.49 for an increase of 69 percent in a matter of weeks.
Two high performing stocks pulled back this week Dolphin Cove hit a record high of $30 during the week but pulled back to $22 on Friday while former ICTOP10 listed Caribbean Producers hit a record high of $25.99 earlier in the week, pulled back to $16 on Thursday before closing the week at $17.85. December results should be out for this stock during the coming week and will have benefitted from the resurgence in tourist arrivals.
Medical Disposables gained 12 percent this past week to end at $7.55 and exited the Junior Market TOP10 listing, with Elite Diagnostic having traded at a 52 weeks’ high of $4.40 two weeks ago and ended the previous week at $3.73, suffered more losses this past week and is back to the TOP10. In the Main Market, Scotia Group rose nine percent to $37.50 and was replaced in the TOP10 by Jamaica Broilers.
Lasco Distributors jumped 15 percent to $3.73 ahead of third quarter results due out shortly and General Accident moved up 7 percent to $6.50, while Honey Bun and Jetcon Corporation both rose 5 percent in the week. AMG Packaging rose 3 percent to end at $3.70 and so did Caribbean Assurance Brokers that closed at $3.10.
Guardian Holdings climbed 5 percent to close at $575, JMMB Group held on to a 2 percent rise for the week and traded at a 52 weeks’ high of $44.61 on Friday but closed at $41.99. Pan Jam Investment and Radio Jamaica settled with a 5 percent rise for the week, while Proven Investment lost 8 percent to close at US$0.21 and Sygnus Credit Investments slipped 4 percent to $15.23.
The sharp price movements in the Junior Market over the recent past weeks reduced the potential gains markedly, with the average increase projected for the TOP 10 Junior Market stocks now at 104 percent versus 114 percent last week and is now lower than the Main Market at 128 percent.
The top three stocks are Caribbean Assurance Brokers followed by Lasco Financial and Lasco Distributors to gain between 114 and 126 percent, compared to 128 and 148 percent, previously.
The potential gains for Main Market stocks moved from 131 percent to this weeks’ 128 percent, with the top three being JMMB Group followed by Guardian Holdings and Sygnus Credit Investments all projected to gain between 165 and 186 percent from 155 and 193 percent last week.
After trading at a big discount to the Main Market for two years, the average PE for both the JSE primary markets has virtually merged just below 17 times 2021 earnings.
The Junior Market closed the week, with an average PE of 16.8 based on ICInsider.com’s 2021-22 earnings and is currently below the target of 20 and now virtually at the average of 17 that was achieved at the end of March last year. The TOP 10 stocks trade at a PE of a mere 9.8, with a 42 percent discount to that market’s average. That means there is a lot of room for the TOP10 stocks to run between now and the end of March.
The Junior Market can gain 19 percent to March this year, based on an average PE of 20 that would take the index to 4,700 points. About a third of Junior Market stocks with positive earnings are trading at or above this level, averaging around 23.
The average PE for the JSE Main Market is 16.4 just 16 percent less than the PE of 19 at the end of March and 22 percent below the target of 20 to March this year. The Main Market TOP 10 average PE is 8.9 representing a 46 percent discount to the market and well below the potential of 20. A total of 14 stocks or 30 percent of the market trade at or above a PE of 19, with most over 20, for an average roundabout 25, suggesting that the accepted multiple is between 20 and 25 times current year’s earnings.
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 March 2022 and 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 per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Spur Tree Spices gains 32% on listing debut
Newly listed Spur Tree Spices gained 32 percent after climbing 32 cents to an all-time high of $1.32 after exchanging 56,569 stocks on the first day listed on the Jamaica Stock Exchange Junior Market on Friday and helping the overall volume of stocks traded to jump 234 percent and the value surging 326 percent higher than on Thursday after nearly 13 million units of Fontana shares passed through the market with a value of $96 million.
A total of 40 securities trading compared to 35 on Thursday and ended with 14 rising, 15 declining and 11, closing unchanged.
At the close, the Junior Market Index lost 13.25 points to end at 3,470.17.
The PE Ratio, a measure used to compute appropriate stock values, averages 14.7 The PE ratio of each stock shown in the chart below is based on ICInsider.com earnings forecast for companies with financial years up to August 2022.
Some 19,875,289 shares traded for $123,323,735 compared to 5,944,460 units at $28,932,503 on Thursday. Fontana led trading with 12.91 million shares for 65 percent of total volume followed by Lumber Depot with 1.46 million stock units for 7.3 percent of the day’s trade and iCreate with 1.09 million units for 5.5 percent market share.
Trading averaged 496,882 shares at $3,083,093 in contrast to 169,842 shares at $826,643 on Thursday with the month to date averaging 176,097 units at $819,178, compared to 137,680 units at $548,051 on Thursday. December closed with an average of 409,209 units at $1,318,877.
Investor’s Choice bid-offer indicator shows no stock ending with the bid higher than the last selling price and four closed with lower offers.
At the close, Access Financial rallied 89 cents to end at $20, with 8,659 shares crossing the exchange, AMG Packaging popped 17 cents in closing at a 52 weeks’ high of $3.40 while exchanging 240,608 units, Blue Power shed 30 cents ending at $3.35 in an exchange of 156 stock units. CAC 2000 rose 30 cents to $8.30 after exchanging 100 stocks, Caribbean Assurance Brokers advanced 11 cents to close at a 52 weeks’ high of $3.12 in switching ownership of 225,543 units, Caribbean Cream lost 11 cents to close at $5.89 in trading 38,557 stocks. Consolidated Bakeries popped 12 cents to $1.33 with 20,609 shares changing hands, Dolphin Cove declined 95 cents to end at $19.05, with 385,686 stock units clearing the market, Elite Diagnostic climbed 9 cents in closing at $3.18 after trading 103,682 stock units. General Accident increased 28 cents in ending at $6.29 after exchanging 20,043 shares, Honey Bun dropped 10 cents in closing at $9 with the swapping of 63,479 units, Indies Pharma fell 19 cents to close at $3.01 in trading 202,836 stocks. Lasco Distributors declined 5 cents to $3.10, with 224,695 units changing hands, Lasco Manufacturing lost 15 cents to end at $4.70 after 5,828 shares crossed the market, Limners and Bards fell 9 cents to $3.40 after an exchange of 451,750 stocks.
Mailpac Group dropped 20 cents to close at $3.10 trading 671,259 stock units, Main Event shed 45 cents in ending at $4.30 with an exchange of 611 units, Medical Disposables fell 10 cents to $7.40 in an exchange of 3,500 shares. Paramount Trading rose 18 cents in closing at $1.48 while exchanging 17,226 stock units, Stationery and Office Supplies rose 10 cents to $5.85 after exchanging 2,752 shares and Tropical Battery inched 5 cents up to $1.28 in switching ownership of 35,902 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
30% gain for Spur Tree Spices
Shares in Spur Tree Spices started trading this morning at $1.30, with a mere 3 shares changing hands as the newly listed Junior Market stock attracts huge demand, with 389 bids posted ahead of the market’s opening, ranging from $1 to a high of $1.30, with demand totaling 6.46 million units at $1.30.
An indication of demand to buy below $1.30, is as follows; 527,000 units at $1.29, a total of 3.9 million shares at $1.25 and 3.6 million at $1.20. Sell orders start at $1.50 with 12,500 followed 1,500 units at $1.70, 26,000 at $1.80 56000 at $1.99 and 107,000 at $2 with other reasonable offers going up $3.20.
Under the stock exchange rules, trading in the stock is now frozen until 10.30 this morning and cannot trade at a higher price than $1.30 today. Following the reopening of the stocks for trading, after trading was frozen, bids have come in for more than 36 million units at $1.32, over 23 million at $1.31 and 38.46 million at $1.30.
The movement in the stock helped push the Junior Market Index over the 3,500 mark for the first time since early October 2019.
64% gains for ICTOP10 picks in 2021
The 2021 calendar year ended on Friday, with the Junior Market rising a near 30 percent and the Main Market just holding above the close of the prior year. Against this backdrop ICInsider.com TOP 15 stocks at the start of the year had a 53 percent average gain in the Junior Market but 64 percent when Honey Bun that was reported on in December 2020 and Future Energy Sources (Fesco) that was Buy Rated when the IPO hit the market was up and impressive 64 percent.
IC Buy Rated Caribbean Producers was by far the best performing stock on the JSE for 2021.
Only three Junior Market stocks declined amongst our selection with Elite being the worse with a loss of 11 percent.
TOP10 MM stock did not do as well as the JM but that was told to readers at the start of the year. The average gain for the TOP15 Main Market stocks was 10 percent that excludes Caribbean Producers. The highest gaining stock from the list was Radio Jamaica up 61 percent and Grace Kennedy 58 percent, the two worse performers were Berger Paints and Scotia Group down 12 percent each.
The big news for the market for the past week continues to be the Initial Public offer of Spur Tree Spices priced at $1 per share that was heavily oversubscribed.
Medical Disposables rose 7 percent for the week to $6.49 and dropped out of the TOP10 and was replaced by General Accident that comes in at $6. In the Main Market TOP10, Sagicor Group rose 9 percent for the week to close at $58 and was replaced by Scotia Group at $36.
During the week AMG Packaging rose 4 percent to $2.20, Access Financial Services lost 9 percent to $19, Lasco Distributors rose 6 percent to $3.47, Elite Diagnostic rose 5 percent to $2.85 and Honey Bun gained 8 percent to $9.25. In the Main Market, Caribbean Producers popped 9 percent to $13, JMMB Group and PanJam Investment rose 3 percent, while losses were suffered by Radio Jamaica down 5 percent and Sterling Investments with a fall of 7 percent
The top three Main Market stocks, this week are Guardian Holdings followed by JMMB Group and Radio Jamaica all projected to gain between 199 and 258 percent up from 183 and 261 percent last week.
The Junior Market top three stocks changed a bit during the week, with AMG Packaging leading, followed by Caribbean Assurance Brokers and Access Financial Services. All three can gain between 174 and 218 percent versus 158 and 230 percent, previously.
The average gains projected for the TOP 10 Junior Market stocks remained unchanged at 149 percent and Main Market stocks moved from 154 percent to this weeks’ 152 percent.
The Junior Market closed the week, with an average PE of 14.8 based on ICInsider.com’s 2021-22 earnings and is currently well below the target of 20 and the average of 17 at the end of March this year based on 2020 earnings. 
The TOP 10 stocks trade at a PE of a mere 8.2, with a 45 percent discount to that market’s average.
The Junior Market can gain 35 percent to March next year, based on an average PE of 20 and 15 percent based on an average PE of 17.
The average PE for the JSE Main Market is 16.4, just 16 percent less than the PE of 19 at the end of March and 22 percent below the target of 20 to March 2022. The Main Market TOP 10 average PE is 8.2 representing a 50 percent discount to the market and well below the potential of 20. A total of 13 stocks or 28 percent of the market trade at or above a PE of 19, with most over 20, for an average roundabout 25, suggesting that the accepted multiple is between 20 and 25 times the current year’s earnings.
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 March 2022 and 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 per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Spur Tree Spices joins ICTOP10
The big news for the market for the past week was the release of the prospectus of the long-awaited Initial Public offer of Spur Tree Spices priced at $1 per share at PE of 8.7 based on earnings before tax and propelling the stock in this week’s Junior Market ICTOP10. Investors should also see the prospectus release for Jamaica Fibreglass Products this week or next.
Spur Tree pushed Jetcon Corporation out of the TOP10, with the latter enjoying a 9 percent price rise to 99 cents. Over in the Main Market TOP10, Sagicor Group rose just 2 percent to close at $53.
During the week, AMG Packaging rose 3 percent to $2.12, Access Financial Services climbed 7 percent to $20.95, Lasco Distributors rose 6 percent to $3.47, but Elite Diagnostic and Honey Bun both fell 10 percent to $2.71 and $8.55, respectively and Caribbean Cream fell 4 percent to $5.70.
The public offer for Spur Tree Spices shares opens on Wednesday this week and should be heavily oversubscribed, with closure likely by the end of the week.
This week, the top three Main Market stocks are Guardian Holdings, followed by JMMB Group and Radio Jamaica, all projected to gain between 183 and 261 percent, up from 178 and 257 percent last week.
The Junior Market top three stocks changed a bit during the week, with AMG Packaging leading, followed by Caribbean Assurance Brokers, with Access Financial Services moving from the second spot to the third position. All three can gain between 158 and 230 percent versus 167 and 240 percent previously.
The average gains projected for the TOP 10 Junior Market stocks moved from 149 percent last week to 151 percent and Main Market stocks moved from 155 percent to this weeks’ 154 percent.
The Junior Market closed the week with an average PE of 14.4 based on ICInsider.com’s 2021-22 earnings and is currently well below the target of 20 and the average of 17 at the end of March this year based on 2020 earnings. The TOP 10 stocks trade at a PE of a mere 8.1, with a 44 percent discount to that market’s average.
The Junior Market can gain 39 percent to March next year, based on an average PE of 20 and 18 percent based on an average PE of 17.
Eleven stocks representing 26 percent of all Junior Market stocks with positive earnings are trading at or above this level, similar to last week, indicating that many others will rise towards the 17 mark in the months ahead.
The average PE for the JSE Main Market is 16.1, some 18 percent less than the PE of 19 at the end of March and 24 percent below the target of 20 to March 2022. The Main Market TOP 10 average PE is 8.1, representing a 51 percent discount to the market and well below the potential of 20. A total of 13 stocks or 28 percent of the market trade at or above a PE of 19, with most over 20, for an average roundabout 25, suggesting that the accepted multiple is between 20 and 25 times the current year’s earnings.
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 March 2022 and 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 per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
IPO gifts for Christmas and early New Year
The current year 2021 has not been a bumper one for initial public offerings in Jamaica, all of that could change as Santa has one or two gifts on his sleigh to deliver either a few days before Christmas or just after.
Word on the street is that investors should save some of the money earmarked for Christmas gifts and prepare for two Initial Public offerings that could hit the road ahead of Christmas and just ahead of the New Year.
The year is closing fast saw one outstanding offer returning a bid payoff for investors as the Junior Market listed Future Energy Source there were a few in the Main market but they failed to generate any excitement for investors.
ICInsider.com previously reported that the initial public offer of shares in Jamaica Fibreglass Products is expected to come to the Jamaican capital market in October, our source advises, with Spur Tree Spices to come shortly after. We said then that, “Jamaica Fibreglass Products produces fiberglass-based furniture and beddings, with revenues said to be in the region of $600 million, is expected to raise approximately $250 million for expansion purposes. The prospectus of the Metry Seaga-owned company is said to be at an advanced stage of preparation and should be moving through the various stages for approval soon.”
“Spur Tree Spices, with revenues, said to be just over $1 billion, should also be coming in October, if all goes well, intending to pull in $250 million. GK Capital are brokers of the two issues that are slated to list on the Junior Market.”
Various issues seem to have delayed both of the above but the various issue may have been dealt with and the runway is said to be cleared for flights to take off sooner than later.
These two are not the only ones coming. Word is that Mayberry Investments has a few potential IPOs with one or two at advanced stages of readiness to hit the market in 2022. IC Insider.com gathers that one is an IPO to raise around $200 million in the educational line of business and one is for an existing listed company for a fresh capital raise. There are some regulatory issues regarding the structure of reserve shares for the initial public issue, with the FSC is now proposing that the vast majority of an issue must be made to the general public, thus severely limiting the percentage that can be kept for select clients. It is a move intended to squelch the many concerns of investors of being shut out of getting reasonable amounts of issues.
In October this year, the social learning portal Edufocal disclosed that they signed an agreement to engage Mayberry Investments in a move to raise capital. ICInsider.com gathers that the effort will likely bear fruit early in the New Year. The government of Jamaica’s intention to divest their 20 percent holding in JPS is at a fairly advanced stage and could be early in 2022, but that investment could be fraught with potential dynamite for small investors.
Keep watch, they all could be closer than you think.
New IPOS expected in October
The initial public offer of shares in Jamaica Fibreglass Products is expected to come to the Jamaican Capital market in October, our source advises, with Spur Tree Spices to come shortly after.
The company produces fiberglass based furniture and beddings, with revenues said to be in the region of $600 million, is expected to raise approximately $250 million for expansion purposes. The prospectus of the Metry Seaga owned company is said to be at an advanced stage of preparation and should be moving through the various stages for approval soon.
Spur Tree Spices, with revenues, said to be just over $1 billion, should also be coming in October, if all goes well, with a view to pull in $250 million. GK Capital are brokers of the two issues that are slated to list on the Junior Market. The prospectus of the company that has been manufacturing seasonings and sauces since 2006 for the local and export markets is also at an advanced stage of readiness, ICInsider.com gathers.
ICInsider.com is informed that the prospectus for one issue is in a draft form currently, so it should be ready to move to the regulators shortly. IPOS are subject to approval, primarily by the Jamaica Stock Exchange and Financial Securities Commission, before the prospectus can be released to the public as such, the exact timing is subject to signing off by them.
One source advised IC Insider.com that there are several potential listing candidates in the Manufacturing sector, with a number of them expressing interest in the listing. Another source advises that there are a number of potential listings in the NCB Capital Markets pipeline. The disruption to business caused by covid-19 is creating delays in some of the issues.
What appears to be a rush to list is a marked departure from the situation that existed before the advent of the Junior Market, with many business owners now seeing the major benefits that listings bring and the usefulness of long term capital.
In the meantime, Sygnus Real Estate Finance IPO that is seeking to sell 207.6 million up sizeable by 38.86 million units to raise a maximum of US$15 million, is extended to Friday, September 10.
IPOs coming in your future
Jamaica Stock Exchange investors should be seeing a new IPO coming to the market sometime in July, subject to regulatory approval, with Sygnus Real Estate Finance getting ready to blast out of the box reports reaching this publication indicate.
The company, which is said to be dedicated to investing in and funding real estate developments through a combination of debt capital as well as equity capital, has projects on its books already, with developments in St Ann, St Catherine and Kingston, which the principals expect to extract extra value by way of creative acquisition and disposal. The company strategy is to fund new developments through real estate notes secured by a charge over the properties.
The company, which will be separate from Sygnus Credit Investments, could benefit from funding from them and is expected to raise $3 to $4 billion in the region. The company is coming to the market at a time of unprecedented construction of buildings in the country. Reports reaching ICInsider.com indicate strong buying interests locally and from overseas in townhouses and detached units in the country’s hills, and many see Jamaican real estate as cheap.
Also coming around July is Jamaica Fibreglass Products that produces furniture and bedding, to raise approximately $230 million for expansion purposes and Spur Tree Spices may make it towards the end of the year to pull in around $250 million. The company says it has been manufacturing all in one seasoning and sauces since 2006 for the local and export markets.
There has also been chatter in the marketplace that Jamaican Teas may consider a spin-off of its manufacturing arm into a separately listed company.
