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JSE IPO oversubscribed

Published:Tuesday | July 9, 2013 | 12:35 PM

The initial public offering of the Jamaica Stock Exchange (JSE) shares closed on Monday, a day ahead of the deadline for subscriptions because it was oversubscribed by 41 per cent.

The IPO opened on Friday, July 5 and was expected to close today. More than 150 applications were received for the offer, according to a release issued on behalf of the JSE.

The invitation was for subscription and sale of 38.25 million shares, of which 28.05 million were newly issued for subscription, and 10.2 million were existing shares.

The shares were priced at J$2.85 each.

Of the total, 3.8 million shares were reserved for staff at J$2.55 per unit, and just over 7 million available to lead broker Stocks & Securities Limited at J$2.85.

Applicants, including those for reserved shares, will be advised of the basis of allotment within three business days in accordance with the main market rules, in addition to being posted on the JSE website.

“The closing of the invitation represents a landmark event for the JSE as they will now be able to use the proceeds to foster future growth for the company, which will be done through new product offerings that will further diversify its business and income streams, in addition to settling outstanding debt obligations,” the release said.

Manager of Investment Banking at Stocks & Securities Limited, Lamar Harris said “SSL has received an overwhelmingly positive response to the offer. This is extremely encouraging when one considers the vital role that the JSE plays in building Jamaica’s capital markets and that the Exchange is a national utility. The listing of the JSE is a historic event and SSL is truly proud to be the lead broker.”

The closing of the invitation represents SSL’s fifth client IPO offering, as well as the company’s first anticipated main market listing.

The JSE sought to raise J$107.8 million to retire debt and offer new services, according to its prospectus for the IPO.