JMMB allocates another 24.1m shares
Jamaica Money Market Brokers (JMMB) yesterday announced that it will increase by another 24.1 million, the amount of shares it will allocate to buyers under its oversubscribed public offer.
The decision by the vendors, led by the Duncan family, will mean that the public holding of the company, after the final allocation, will be 17.6 per cent, rather than 16 per cent.
In an offer that opened on December 2, JMMB put on sale, at $4.15 a piece, 234 million of its 1.463 billion shares. That offer, which would have raised over $970 million, was oversubscribed by 34 per cent, JMMB said.
The additional allocation, for which the vendors had reserved the right in their prospectus, will pull in another $100 million.
“.The vendors have decided to make available 24 million additional shares to the offer… to satisfy the strong demand for shares in the offer for sale earlier this month which was oversubscribed,” the company said in a statement.
JMMB’s managing director, Donna Duncan-Scott, said that with the increased allocation, 50.5 million, or 19.5 per cent, of the offer has been earmarked for the company’s clients, while 34.4 million, or 13.35 per cent would go to staff and related parties.
The general public has been allocated 173.23 million, or 67 per cent of the shares.
Duncan-Scott said that all applications from the public, up to 50,000 shares, will be fully allocated. Anything of that initial 50,000 will be allocated on a pro-rata basis until the shares in the public bloc are exhausted.
In the case of clients, she said that allocations will be “from the bottom up, ensuring that the smallest application is satisfied first. Clients are restricted to a maximum allocation of 100,000 shares from the client pool.
Allocations will be made from this pool until all client orders are filled or the pool is fully allocated.
In the event of unsatisfied demand from the client pool at the end of the allocation, the applications for the excess will be transferred to the public pool.
On the other hand, if shares are left over from the client pool these will be transferred to the public pool.