JMMB to broker IPO for Alliance Financial Services

JMMB to broker IPO for Alliance Financial Services

Wednesday, January 29, 2020

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JMMB Securities Limited has been contracted by Alliance Financial Services Limited (AFSL) to be the stockbroker and financial advisor for their upcoming initial public offer (IPO).

The Alliance IPO is to be listed on the main market of the Jamaica Stock Exchange (JSE). The announcement came last week during the opening breakfast session of the JSE capital markets conference held at the Jamaica Pegasus.

Karl Townsend, Jamaica’s chief country officer for the JMMB Group capital markets unit, in making the announcement, shared that he expects for the IPO to be launched next month.

“The draft prospectus for AFSL’s IPO has been submitted to the regulators and subject to regulatory approval; I expect that this IPO will be launched before the end of February 2020,” he said.

The full prospectus will share the details of the offer, in addition to the company’s financial performance and strategic direction, for the benefit of the investing public.

In sharing details about the 16-year-old company’s financial performance, Robert Chin, deputy chairman and vice-president, reinforced the solid track record of the company.

“Over the last five years, there has been consistent growth of its top line, evidenced by a 31.6 per cent compounded annual growth rate (CAGR) in revenue, coupled with a 54.6 per cent CAGR in net profit after tax.

The financial entity has also demonstrated the ability to provide significant shareholder value, with a return on average equity (ROAE) of 55 per cent, in 2019, which is among the highest when compared to listed companies in the financial industry, on the JSE,” a release informed.

AFSL is a family-owned company that is licensed by the Bank of Jamaica to provide cambio and remittance services, since 2004.

The company operates from headquarters at 7 Belmont Road, Kingston 5, and four (4) locations at Liguanea, Kingston; Mandeville, Manchester; May Pen, Clarendon, and Portmore, St Catherine. As a MoneyGram super-agent, its remittance business line is also supported by 68 sub-agents islandwide.

It was reported that over the last 18-month period, the company’s cambio volumes represented approximately 8.3 per cent of the cambio market and three per cent of the entire foreign exchange markets.

Estimates also indicated that it accounts for about 30 per cent of all incoming remittances from MoneyGram International. JMMB Securities Limited was the arranger and broker for JMMB Group Limited’s additional public offer of shares (APO) in Jamaica and Trinidad and Tobago, which raised $12.4B in November 2019 securing subscriptions of J$19.6B, making it the largest public offer of ordinary shares in Jamaica’s history.

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