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Eppley launches J$377 IPO

Published:Friday | July 12, 2013 | 12:00 AM

Eppley Limited, a financing company majority owned by the Musson group, plans to float 218,999 of its shares and list on the junior stock market.

Each share, is priced at J$377, making it the most expensive initial public offering (IPO) on the junior stock exchange in its four-year history. If the offer is successful, Eppley will also become the most expensive stock listed on the combined JSE indices (see Page 12).

The public will be offered 73,000 shares amounting to 9.17 per cent of the company under the IPO, while the rest is reserved for staff and directors as well as a company to which Eppley is indebted. A portion of the US$1.1-million (J$112m) loan owed to Stony Hill Capital Limited (SHCL), will be converted to equity under the offer for which SHCL will receive 121,666 shares valued at J$45.9 million.

The IPO aims to raise J$82.56 million, according to the company's prospectus.

Eppley, formerly known as Orrett and Musson Investment Company, is chaired by Nigel Clarke; its managing director is Nicholas Scott.

The company manages a portfolio of loans, leases and other forms of commercial credit, according to the prospectus.

"In so doing, it provides a variety of credit products to corporate and professional customers, including insurance premium financing, leases, commercial loans and other forms of credit," the document says.

Eppley is owned 51 per cent by Musson Investment and 12.65 per cent by General Accident Insurance Company - both majority owned by Musson Jamaica. ATL Pension also owns 35.38 per cent of Eppley.

The holdings of the three partners will dilute to 37.68 per cent; 9.17 per cent and 25.65 per cent, respectively, after the offer is executed; while new shareholder SCHL's equity will amount to 15.28 per cent; and the staff reserves of 24,333 shares will translate to 3.05 per cent of Eppley stock.

The offer to subscribe for shares will open on July 22.