Tue | Jul 17, 2018

Proven targets $2b with new rights issue

Published:Wednesday | June 14, 2017 | 12:00 AMAvia Collinder
Johann Heaven, senior vice president of Proven Management Limited

Proven Investments Limited (PIL), an offshore company owned by Jamaicans, will offer 68.9 million in new shares to existing shareholders for US$0.24 per unit, at month end. The offer to be brokered by subsidiary company Proven Wealth Limited would raise US$16.5 million or $2.15 billion at full take-up. Christopher Williams, president of Proven Management Limited, the management company for PIL, said the capital raised will finance new acquisitions. Its last acquisition, was the Bank of St Lucia International Limited, doubled the company's asset base.

"Our objective is to execute one deal a year," said Williams.

PIL deals in tradable securities for investment purposes. The group also includes a real estate investment trust and microlending outfit.

Senior vice president of Proven Management Johann Heaven said the rights issue would fund both expansion and acquisitions.


Deals in pipeline


"We have a few deals in the pipeline, in both private equity and real estate, the details of which we can't disclose at this time," he said.

PIL's board approved the renounceable offer of 68,949,472 ordinary shares last month. Subscriptions open June 26 and close July 7.

Shareholders will be eligible for one new share for every eight they currently own. Alternatively, they may choose to partially or fully renounce their allotment in favour of a person of their choice.

There are currently 551,595,777 PIL shares outstanding with a market value of US$143.4 million. The units trade on both the USD and JMD platforms of the Jamaica Stock Exchange. The stock closed down two cents at US$0.24 on Tuesday, and last traded on the JMD Main Market in March at $19.56.

This will be Proven's third renounceable rights issue since its listing on the Jamaica Stock Exchange. The first in 2014 raised US$10.3 million, while the second in 2015 raised US$30 million, after the company decided to upsize the offer beyond the targeted US$19.66 million to satisfy demand.

Heaven said the current offer of US$0.24 per share is priced to boost take-up of the shares.

"We have priced the offer as attractive as possible to reward shareholders for their loyalty and to allow them to participate at a level that provides the opportunity for potential upside in the near term," he said.

The top owners of Proven Investments are Peter Bunting; Nekia Limited; Marco Miret and joint party; Ozymandias Limited; Orrett Richards; Alydar Limited, John Greaves and other parties; Pelican Investment Company; and Tajebe Limited.