Sterling Investments to list next month
Sterling Investment Limited (SIL) plans to list on the Jamaica Stock Exchange (JSE) next month without raising cash.
"The process is ongoing. It looks like sometime in July based on the bureaucratic steps required," said Charles Ross president and CEO of Sterling Asset Management the company that manages SIL, in conversation with the Jamaica Observer.
The company plans to submit an application to list by introduction on the Main index of the JSE rather than the US equities index.
"We are not raising money in the listing. We did so in December 2012 with the private placement," explained Ross. "We are listing on the main market as the company reports its financials in Jamaican dollars".
The funds raised in the private placement in December 2012 were augmented with plans to raise funds in Trinidad & Tobago last year.
The funds raised in Sterling Investment's first private placement was not disclosed.
Shareholders bought shares in the company last November, with a long-term view of the investment, but some institutional investors, such as pension funds, could only participate on the promise of a public listing.
The minimum buy in for the first private placement was $10 million, although a single share sold for $100, while the floor is expected to be just as high in Trinidad given the profile of investors there.
But the listing will enable interested investors to buy any amount of shares -- even one.
Sterling Asset which holds over $18 billion under management will manage SIL funds for a fee (two per cent).
The investment strategy primarily focuses on overseas financial instruments, primarily fixed-income securities that are traded on global capital markets.
Sterling Asset's offshore mutual funds managed for over 11 years generate an average annual return of 14 per cent in US dollars per annum.