Popular new stock issues have a way of electrifying stock markets and empower new stock market investors to increase their wealth.
It happen when National Commercial Bank went public in 1987 and again with the Wigton IPO.
“While the overall number of applications was 31,200, we are pleased to report that 11,772 or 38 percent are new investors to the market. This represents an increase in the number of account holders in the JCSD of 7.6 percent,” Marlene Street Forrest managing Director of the Jamaica Stock Exchange stated in addressing the observers at the listing ceremony of Wigton Windfarm listing on Wednesday.
Street Forrest went on to say, over 64 percent of those who invested were under 50 years of age with approximately 50 percent under 40 years old.” According to Street Forrest, females comprised 56 percent of the applicants for shares compared to 44 percent males. “The average spend for new investors was approximately $124,000 with the offer oversubscribed by 158.8 percent.”
Wigton stock could double soon.
Wigton is the largest IPO the list on the JSE since the listing of NCB, Telecommunication of Jamaica in the latter part of 1980s. In recent times, it is ahead of Wisynco Group with 7,769 applicants. “We have made tremendous strides as Wigton with total applications of 31,200 and four times the size of that offer has taken 21 days from the close of the offer to listing today” Street Fporrest stated that,
Andrew Holness, Prime Minister of Jamaica, stated that he wanted not only for Jamaicans to own assets but to share in the profitability of the company and this was achieved with the Wigton issue. He noted also that shares the company own in Jamaica Public Service and Jamaica Mortgage Bank will be divested in the short to medium term.
The stock closed with the price rising by a maximum of 30 percent at 65 cents trading 8,351,000 but ended with the bid at 66 cents which will allow it to trade as high as 85 cents on Friday.
