Tue | Jan 26, 2021

PBS targets US$41m in dual offer to stock market

Published:Tuesday | June 27, 2017 | 12:00 AMSteven Jackson

Document company Productive Business Solutions (PBS) is going to on the market in an attempt to raise US$41.5 million from an offer of ordinary shares in the company as well as preference stock.

In local currency terms, the offer is valued at around $5.3 billion. The 39 million ordinary shares on offer will be sold at US$0.55 per share, while the 25.8 million redeemable preference shares are priced at J$1.

The offer to be made in two markets, Jamaica and Barbados, opens on July 5 and closes July 24, according to lead broker NCB Capital Markets Limited.

PBS, which acts as regional agent for Xerox in 15 countries, is a member of the Musson Jamaica group of companies run by Paul ‘PB’ Scott.

PBS plans to use the equity funds raised to retire existing debt, US$17.5 million, and provide working capital of US$13.7 million for the company, according to the prospectus. It also plans to use another US$8.7 million to buy back shares from IFC, the private sector financing arm of the World Bank. Another US$1.7 million will cover the cost of listing fees.

The document company made a loss last year of US$3.2 million, after making a profit of US$1.6 million in 2015. In the same periods, its revenue fell to US$171 million from US$194.3 million.