Record haul for Proven rights issue
Proven Investments Limited CEO Christopher Williams confirmed on Tuesday that the company has closed its latest shares with record subscriptions of US$31 million (J$3.5 billion), portions of which will fund new acquisitions and projects.
Proven initially went to the market with a renounceable rights issue to raise US$19.66 million from 122 million at 16 US cents per share, but increased the offer after heavy demand.
"It's the largest rights issue ever on the exchange. We are very happy for that and humbled by the support," Williams said.
Proven is one of two stocks listed on the USD market of the Jamaica Stock Exchange. They last traded at US 18 cents per share, valuing the company at US$66.36 million.
Proven is currently chasing a big acquisition in a Caribbean market, but the rights issue proceeds will also pay down debt, the company prospectus indicated.
Its most recent acquisition was 49.27 per cent of Access Financial Services Limited in December 2014 for $1.2 billion, which was proceeded by the purchase of First Global Financial Services for J$3 billion, and a J$100-million investment in transport company Knutsford Express, which pushed its stake to 20 per cent.
Some $700 million of the Access acquisition was financed by debt; the First Global deal was financed with 50 per cent debt and 50 per cent equity, while the Knutsford Express transaction was funded from internal resources.
Proven is currently undertaking construction of a 32-unit J$200-million apartment complex development of which $100 million is debt-financed.
The company is also awaiting approvals on a 20-apartment complex at Sullivan Avenue in Kingston in March, expected to cost J$150 million.