First Rock IPO almost fully subscribed after four days

Business

First Rock IPO almost fully subscribed after four days

IPO to be upsized to $US18.48 million

BY DURRANT PATE
Observer business writer

Friday, January 17, 2020

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First Rock Capital Holdings' Initial Public Offering (IPO) to raise approximately US$12.32 million is going so well that the 106-million shares on offer have almost been fully subscribed within four days of opening.

That's the findings of checks made by the Jamaica Observer, which can confirm that the IPO will be upsized by an additional 53,041,666 shares. This will see the IPO increasing to 159 million shares and the capital raised increasing to US$18.48 million.

First Rock Capital Holdings is an international business company duly incorporated under the laws of St Lucia with offices in Jamaica, Cayman, Florida and Costa Rica. Information coming from the brokers associated with the IPO is that the take-up has been very strong and the Jamaican investing public is keen on buying into First Rock.

Sagicor Investments Jamaica is one of the arrangers for the IPO and lead stock broker while the co-arranger is Sygnus Capital Limited.

When contacted yesterday ,First Rock President and Co-founder, Ryan Reid would not comment on the IPO, only saying, ”take-up has been tremendous so far and we are humbled by the support.”

The shares are being offered at a price of the Jamaican dollar equivalent of US$0.12, which amounts to $16.67 per share with the minimum subscription being 1,000 shares. The IPO, which opened on Monday, is slated to close on January 31.

EARLY CLOSING DATE FOR IPO

However, given the overwhelmingly positive response from the investing public, sources tell the Caribbean Business Report that the writing is already on the wall for an early closing date.

When pressed on the reports of almost full subscription of the IPO already, Reid was adamant that he will not be drawn into offering a comment on the IPO at this time, citing Financial Services Commission (FSC) restrictions on divulging sensitive information while the IPO is still in progress.

DEVELOPMENT OF SEAVIEW

He, however, confirmed that First Rock is awaiting the proceeds of the IPO to build out its 5 Seaview Avenue property in Kingston 6, which it recently bought for US$2.2 million.

The 1.6-acre site, located in what is known as the Golden Triangle in St Andrew, is among the projects identified for capital deployment from the IPO.

The Caribbean Business Report understands work is now on in earnest to get the property developed as soon as possible to cash in on the high demand for residential and commercial spaces in that section of the city.

First Rock already owns eight properties and plans to acquire an additional three in the coming months, including The Shoppes at Rose Hall in Montego Bay. The six-acre complex houses 29 shops, seven of which are unoccupied.

First Rock also plans to acquire a 3.4-acre property on Bamboo Avenue in St Andrew, and an office building in Virginia, United States, which contains the leased offices of SunTrust Bank.

The First Rock Group recorded a profit attributable to shareholders of US$218,261 over the 23-month period August 2017 to September 30, 2019.

Total income during the reporting period was US$993,894 which was comprised mainly of US$217,080 in interest from real estate linked notes and other financial instruments, US$393,042 in property revaluation gains and US$374,301 in foreign exchange gains.


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