JMMB APO was largely oversubscribed


JMMB APO was largely oversubscribed

-rated as the largest ordinary share transaction on the JSE

Friday, November 29, 2019

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The JMMB Group Limited (JMMBGL) is reporting that its additional public offer (APO) of ordinary shares, which closed four days earlier than planned, on November 7 was oversubscribed by 92.5 per cent.

The company through its offer sought to raise approximately $12.4 billion, was informed by the respective regulators of the Jamaica Stock Exchange (JSE) and the Trinidad & Tobago Stock Exchange (TTSE) that that their applications valuing $19.05 billion was well received by investors and the public, making it the largest public offer of ordinary shares in Jamaica. This resulted in the directors upsizing the invitation to 325,000,000 new ordinary shares.

Group chief executive officer (CEO), Keith Duncan said that the group was heartened by the overwhelming confidence that investors have shown in participating in the APO.

“This take-up underscores the confidence that investors have in JMMB Group's ability to execute on its strategy and its commitment to rolling out its growth and expansion plans, over the medium-term. We are especially pleased by the noteworthy response from investors in Trinidad & Tobago, applying for the Trinidad and Tobago dollar equivalent of over $3 billion. This speaks to the strength of the JMMB brand and its ability to resonate with investors, whether large or small, irrespective of country. We look forward to building out our vision, which is built on love, as we partner with our various stakeholders and add shareholder value,” he stated.

Duncan further shared, “We are confident in our ability to deploy the proceeds of this invitation into areas that have a strong potential to grow profit materially – both organically and inorganically.”

The company, at its recent annual general meeting, indicated that it has a goal of more than doubling its current profit to achieve a target of $9 billion in profit, over the next three to four years.

JMMB said that the proceeds from the offer will be used to further facilitate its group's expansion and diversification strategy; through acquisition and adding new businesses and new business lines in the Dominican Republic, Jamaica and Trinidad and Tobago; with a focus on the overarching objective of helping clients achieve their financial goals.

Additionally, the company added that their share price which has appreciated by 30 per cent as at November 11 has over the last five years consistently outperformed the JSE's main index and inflation.

They also reported in relation to the allocation of shares, all key investors from the reserved pool were given full amounts.

“All other investors, both small and large including team members and current shareholders, will receive up to the first 3,000 new ordinary shares. Applications in excess of 3,000 new ordinary shares will then be filled in a similar fashion in increments of 1,000 new ordinary shares, until all applications are met or all the new ordinary shares are allocated,” the company said.

They also noted that refunds were provided to investors on November 20 in instances where applicants did not receive their full allotment.

The shares which traded at $42.67 on the stock market before the APO, were offered to the investing public at a discounted price of $38.75 or TT$1.94; while existing ordinary JMMBGL shareholders, team members and key investors benefited from a special price of $38.00 of TT$1.90 wherein a minimum of 300 shares (and increments of 100 shares) could be have been purchased.

As at November 27 the value of these shares was reflected at $46.67 on the JSE reflecting a 23 per cent appreciation for non- reserved investors and 20 per cent for those reserved.

“JMMB Group will also apply to list the additional share offer on the JSE and TTSE, before the end of November; at which point, those shares can be traded on the respective stock exchanges,” they also said.

-Kellaray Miles

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