Wed | Mar 21, 2018

Proven preference share offer closes today

Published:Wednesday | December 21, 2016 | 12:00 AM
From left: Herbert Hall, assistant vice-president, investment banking at NCB Capital Markets; Johann Heaven, senior vice-president of Proven Management Limited. and Stanley Thompson, manager, origination and structuring, NCB Capital Markets finalise a partnership promising investors a rewarding new year with a subscription in Proven's Cumulative Redeemable Preference Shares.

PROVEN Investment Limited's (PIL) $2-billion preference share offer, which opened last Friday promising investors a rewarding new year, is expected to close today.

The company is offering 400 million shares at $5 each, the minimum subscription amount of which is 10,000 shares at a cost of $50,000.

There will be no withholding tax on dividends on the five-year issue, arranged by NCB Capital Markets (NCBCM).

Assistant vice-president of investment banking at NCBCM, Herbert Hall, said the purpose of the offer is to retire an existing five-year preference share that matures this month, "but more importantly, to raise funds for expansion as PIL pursues additional acquisition opportunities".

He added that the offer served to provide an enhanced level of income above what can be generally found in the local market, as well as preservation of capital for investors.

According to a release on the offer, investors will be provided with a high-yielding asset, which will allow for each to diversify their portfolios while generating attractive income streams in March, June, September and December each year until maturity in December 2021.

Dividends on the cumulative redeemable preference shares is fixed at 8.25 per cent per annum.


No withholding tax


Under the offering, there will be no withholding tax on dividends earned over the five-year life span under current Jamaican tax statute. This is by virtue of the Caribbean Community Double Taxation Agreement.

PIL will be seeking to list the shares on the main market of the Jamaica Stock Exchange in an effort to allow investors to be able to sell and purchase the shares after the close of the offer.