Sagicor says it got applications for more than 300 million shares totalling J$1.5 billion in Sagicor Real Estate X Fund and that all subscriptions to the initial public offering would be fully satisfied.
The offer, priced at J$5, was for 200 million shares with an option to issue up to 500 million shares, depending on demand.
The IPO got 1,357 applications, Sagicor Jamaica said in a press release. The offer, brokered by Sagicor Investments Jamaica Limited, closed as scheduled on Friday, October 18.
"Investors have responded well to this excellent opportunity to invest in prime real estate and foreign exchange-earning hotel properties without the myriad of responsibilities that comes with individual property ownership," said president and CEO of Sagicor Life Jamaica, Richard Byles, in a company release on X Fund's performance.
The funds raised will be used to acquire units in the Sagicor-managed Sigma Real Estate Portfolio unit trust fund, develop a water park at the company's Jewel Runaway Bay Beach & Golf Resort property, and position the company for future investment opportunities.
The company said the shares will be listed on the main market of the Jamaica Stock Exchange within 30 days, with the listed entity to be valued at over J$7 billion.
Sagicor's real estate holdings comprise three Jewel-branded hotels, the R. Danny Williams building in New Kingston; Sagicor Industrial Park Norman Road; Sagicor Industrial Park Freeport; Sagicor Industrial Park Marcus Garvey Drive; Sagicor Montego Bay Commercial Centre; the Sagicor SIGMA building on Knutsford Boulevard, New Kingston; 78A Hagley Park Road, Kingston; Spanish Town Shopping Centre; and a vacant lot on Seymour Avenue, Kingston.