Productive Business Solutions closes public offer
The initial public offer of document company Productive Business Solutions (PBS) was fully subscribed, but its preference share offer remains open, according to lead broker National Commercial Bank (NCB) Capital Markets Limited.
The offer for the ordinary shares closed at approximately noon on Tuesday. "The basis of allocation is to be communicated," added NCB Cap Markets.
Its concurrent preference share offer, however, remains open until further notice.
The offer for ordinary and preference shares opened on July 5 and would have extended to July 24, according to NCB Capital Markets. It was open to investors in Jamaica and Barbados.
PBS was aiming 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 were sold at US$0.55 per share, while the 25.8 million redeemable preference shares are priced at J$1 each.
PBS, which acts as the 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 of 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 period, its revenue fell to US$171 million from US$194.3 million.