Sat | Jan 25, 2020

ADVERTORIAL | JMMB Group additional public share offer largest ordinary share transaction on JSE

Published:Friday | December 6, 2019 | 12:04 PM
Keith Duncan, JMMB Group CEO

The JMMB Group Limited (JMMBGL) Additional Public Offer of Ordinary Shares was oversubscribed by 92.5%, raising J$19.05 billion from investors in Jamaica and Trinidad & Tobago.

This became the largest public offer of ordinary shares in Jamaica. 

The public offer, which closed four days early on November 7, sought to raise approximately J$12.4 billion, the company disclosed to the respective regulators, the Jamaica Stock Exchange (JSE) and the Trinidad & Tobago Stock Exchange (TTSE).

The directors exercised the option to upsize the invitation to offer 325,000,000 new ordinary shares, in keeping with the resolution passed at the financial conglomerate’s annual general meeting held in September. 

“We are heartened by the overwhelming confidence that investors have shown in us, by participating in our additional share offer. This take-up underscores the confidence that investors have in the JMMB Group’s ability to execute on its strategy and its commitment to rolling out its growth and expansion plans, over the medium-term. We are especially pleased by the noteworthy response from investors in Trinidad & Tobago, applying for the Trinidad and Tobago dollar equivalent of over J$3 billion.  This speaks to the strength of the JMMB brand and its ability to resonate with investors, whether large or small, irrespective of country. We look forward to building out our vision, which is built on love, as we partner with our various stakeholders and add shareholder value,” said Keith Duncan, JMMB Group CEO.

Proceeds from the offer will be used to further facilitate JMMB Group’s expansion and diversification strategy; through acquisition and adding new businesses and new business lines in the Dominican Republic, Jamaica and Trinidad and Tobago; with a focus on the overarching objective of helping clients achieve their financial goals.  

Duncan further shared, “We are confident in our ability to deploy the proceeds of this invitation into areas that have a strong potential to grow profit materially – both organically and inorganically.”

The company, at its recent annual general meeting, indicated that it has a goal of more than doubling its current profit to achieve a target of J$9 billion in profit over the next 3 to 4 years.   

The regional financial entity remains committed to building on the solid foundation that it has set over its 27 years.

In pointing to specific areas of growth over the years, the JMMB Group CEO outlined, “our strategic activities in recent years have reflected the expansion of business lines within the Dominican Republic; acquisition of the Capital and Credit Financial Group in Jamaica, which facilitated our eventual transition to commercial banking services in JMMB Bank (Jamaica) Limited; and acquiring full control of JMMB Bank (T&T) Limited and the launch of JMMB Investments (Trinidad and Tobago) Limited and JMMB Express Finance. These initiatives have been instrumental in generating the performance achieved thus far and providing a solid platform for further growth.”  

Additionally, the JMMB Group stock has, over the last 5 years, consistently outperformed the Jamaica Stock Exchange (JSE) main index and inflation.

Shareholders have also benefited from an appreciated in the JMMBGL share price, which saw a 44% appreciation year to date (between January 2 and December 3). 

Basis of Allotment of JMMBGL Shares  

Key investors were allocated their full subscription amount within the reserved pool for this category, as set out in the prospectus. All other investors, both small and large, received up to the first 1,068,000 and 19,000 new ordinary shares in the case of reserved and non-reserved pool respectively. The remaining new ordinary shares in the reserved and non-reserved pool were allocated sequentially in tranches of 1,000 until the new ordinary shares in the respective pools were exhausted. Refunds were provided to investors on Wednesday, November 20, 2019, in instances where applicants did not receive their full allotment.  The JMMB Group also listed the additional share offer on the JSE and TTSE on November 21.

Details of the Offer

The JMMB Group additional public offer of ordinary shares was offered to the investing public at J$38.75 or TT$1.94; while existing ordinary JMMBGL shareholders, team members and key investors benefited from a special price of J$38.00 or TT$1.90. A minimum of 300 shares (and increments of 100 shares) could be purchased. 

JMMB Securities Limited and JMMB Securities Limited (Trinidad & Tobago) acted as the lead broker and arranger of this offer in the respective countries – Jamaica and Trinidad & Tobago. 

In Jamaica, the selling agents included JMMB, Sagicor Investments Jamaica Limited, Proven Wealth Limited, VM Wealth Management Limited, Scotia Investments Jamaica Limited, Barita Investments Limited, JN Fund Managers Limited, Mayberry Investments Limited and NCB Capital Markets via GoIPO. While in Trinidad & Tobago the selling agents were: Bourse Brokers Limited, Caribbean Stockbrokers Limited, First Citizens Brokerage and Advisory Services, West Indies Stock Brokers Limited, Republic Securities Limited and Sheppard Securities Limited.