Electronic application process brings ease to Mailpac IPO


Electronic application process brings ease to Mailpac IPO

Observer writer

Friday, November 29, 2019

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Mailpac Group Limited (MGL) announced last Friday that it had successfully closed its initial public offering (IPO) with the support of NCB Capital Markets. It was the largest IPO in the history of the Jamaica Stock Exchange's Junior Market raising over $2 billion.

“As a team, we are truly honoured and excited at the significant support Mailpac Group garnered in this process,” declared Garth Pearce, chief executive officer of Norbrook Equity Partners (NEP), owners of Mailpac Group Limited “The demand for our shares surpassed our expectations to a level that has made us all proud as stakeholders of Mailpac Group. The demand is a testament to the value of our platform and the team that has built it, and for that, we are humbled.”

The Mailpac IPO was oversubscribed by approximately 300 per cent and according to Pearce, by all indications, it was the most highly subscribed for the junior market ever — both in terms of number of subscriptions and dollar value of subscriptions.

The IPO opened on Friday, November 22, and closed the same day at 5 pm.

Shares were sold electronically and this offered a number of advantages and benefits to applicants. The ease and convenience of applying from any location, any smart device, at anytime meant there was no need to visit a broker or join lines to hand in applications.

Selling in this way also meant that applicants could profit from immediate feedback if there was an error in their application and as such, the investor could remedy the error.

“Before now, errors were likely to be discovered at the close of the IPO and in many instances, investors would not have had a chance to remedy those errors and as such, could be excluded from the IPO,” explained Herbert Hall, vice-president, investment banking at NCB Capital Markets Limited.

The electronic process also allows for a vast reduction in the time it takes to process the applications especially when there are thousands of subscribers. This reduction in processing time results in faster allocation, refunds and listing.

Approximately 5,160 applicants now own shares in the company and Pearce praised the organisation for this recent milestone.

“For over 20 years, our team has worked hard to deliver the highest level service to Jamaican consumers that seek to shop online seamlessly,” he said. “We have continually invested in our people, our technology and our infrastructure to ensure that we continually enhance the experience for our customers and expand the base of Jamaicans that we serve. At MGL, we are obsessed with bringing the benefits of online shopping to every Jamaican and that is immediately apparent to anyone that has interacted with our company.”

In terms of the profile of the new investors, Hall revealed that “we received a good mix of investors with most being individuals, as opposed to institutions.”

“We are excited to work with a new base of shareholders to continue chasing that goal,” Pearce enthused. “Accordingly, the overwhelming support in the IPO has encouraged us that many Jamaicans understand and support what we aim to achieve. We look forward to a bright and fruitful future as a publicly listed company and intend to increase our shareholder value by continually expanding and enhancing our unique offering to Jamaica.”

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