JMMB seeks to raise $3B from pref shares offer
Jamaica Money Market Brokers (JMMB) will be seeking to raise roughly $3.1 billion combined from four simultaneous preference share offers to the market set for January.
The offer would raise in the event of full subscription US$9 million at an interest rate of six per cent, US$3 million at 5.75 per cent, J$1.5 billion at 7.5 per cent and J$105 million at 7.25 per cent.
Part of the offer will replace preference shares valued at $2.76 billion which will mature on January 7, 2016. The offer opens on January 4 and closes on January 14 and has a tenor of 96 months.
"The Group intends to use the proceeds of the offer to refinance existing debt and to support our continuing thrust of regional expansion," according to Group Chairman Dr Noel Lyon in his statement accompanying the prospectus. "We invite you to diversify and grow your portfolio with us by taking full advantage of this attractive offer."
The application list includes nine million cumulative redeemable six per cent shares each at US$1, two million redeemable 5.75 per cent preference shares each at US$1.50, another 1.4 billion cumulative redeemable 7.5 per cent shares each at J$1, and 70 million cumulative redeemable 7.25 per cent shares each at J$1.50.
The preference share offer follows a vote to approve additional preference shares. In September, shareholders at an extraordinary general meeting voted unanimously to approve a special resolution to issue six billion redeemable preference shares at a time deemed prudent by the management.
JMMB earned net profit of J$1.2 billion on net interest income of $2.77 billion over six months ending September 2015, or roughly 20 per cent more profit than a year earlier.
"The years ahead promise to be exciting for the JMMB Group as we embark on a new chapter in our journey to become the premier Caribbean-grown financial group and premier financial services group of choice across the region," said the company in the prospectus.
The JMMB Group serves approximately 220,000 clients in Jamaica, Trinidad and Tobago and the Dominican Republic combined. It provides investments, banking, remittances and insurance brokering services.