JMMB targets $6b-raise from upcoming offer of new preference shares

JMMB targets $6b-raise from upcoming offer of new preference shares

Friday, February 12, 2021

Print this page Email A Friend!


Regional financial outfit JMMB Group Limited (JMMBGL), in a move to propel its growth strategy, is seeking to raise $6 billion from its new preference share offer which is scheduled to open on February 16.

Since its last preference share offer in 2018, JMMB Group has deepened its presence in the countries in which it operates, as evidenced by the growth of its business lines and market share. Through its operations in Jamaica, Trinidad and Tobago and the Dominican Republic, the company has within the last year undertaken a number of activities which has seen it strategically building a presence for itself with an aim to achieve inorganic growth as it seek to bolster the organic growth it has experienced.

The group, also as part of its strategic thrust, said it is further seeking to expand its banking business line inorganically as well as tap into new markets in the near future. The proceeds from the new preference share offer is therefore expected to be used to support the group's continued expansion both locally and regionally.

“The offer provides a win-win opportunity for investors as we seek to add value for new and existing preference shareholders through our sustained growth strategy that is centred on diversifying our business model; expansion of our current business lines in the markets in which we now operate, and taking advantage of strategic opportunities, including acquisitions,” said Keith Duncan, group chief executive officer, in a recent company release.

“As JMMB Group seeks to advance its growth strategy and further build out its offerings, it will continue to tap the market to allow investors to benefit from the attractive returns offered by its preference shares and partake in the vision of the company,” he added.

In the offer, which opens at 9:00 am next Tuesday and closes on March 9, approximately two billion cumulative redeemable preference shares are being offered at a price of $3.00 per share — of this amount 1.5 billion shares are to be offered to clients at a fixed rate of 7.35 per cent for 84 months, while non-clients will be offered a fixed rate of 7.15 per cent for 84 months on the remaining 500 million shares. A minimum of 20,000 shares may be purchased with additional increments of 1000 shares.

The offer, which also has the option to upsize, can issue an additional one billion cumulative redeemable preference shares, thereby increasing the proceeds to $9 billion. Investors interested in participating in the offer are urged to apply using the digital platforms such as Moneyline from JMMB or GoIPO from NCB Capital Markets.

According to JMMB Group's Chief Country Officer Keisha Forbes Ellis, these cumulative redeemable preference shares will provide investors with the opportunity to benefit from attractive, stable and solid returns.

“In addition to investing in the vision and solid track record of the company, the monthly dividend payments over the tenure of the offer is ideal for investors who want a consistent income stream, which can also be reinvested to further bolster returns and their portfolio,” she stated.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaper-login


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT