KINGSTON, Jamaica — General insurance start-up IronRock yesterday issued an initial public offer (IPO) aiming to raise the sum of at least $315 million. 

Due to open on March 1 and close on March 11, the offer consists of 105 million shares priced at $3 each. Lead broker for the offer is Mayberry Investments Limited.

Ninety-eight million shares, also priced at $3 each, are reserved for individuals described as key partners and for clients of Mayberry. 

The company intends to list on the Junior Market for which March 31 is the deadline for existing tax incentives. The regime allows freedom from corporate tax for five years and 50 per cent tax payment for another five. 

If the shares are listed on or after April 1,2016, the company will not be eligible for the concessionary tax regime.

IronRocks’ aim, it asserts in the prospectus, is to capture at least 3.5 per cent of the local market for general insurance within five years or by end of financial year 2020.

The new general insurer, located on Hope Road in Kingston, and registered in June 2015, says it plans to offer all forms of general insurance including motor, property and engineering. The prospectus boasts a company strategy to offer a modern service at a reduced cost through use of technology.

Company founders are Jamaicans Evan Thwaites and William McConnell. Both are the principals in IronRock’s parent and sole shareholder — Granite Group Limited, a company incorporated in St Lucia.

The group currently owns 109 million issued shares out of authorised capital of 25 billion shares. Total shares, which will be in issue, assuming the invitation is fully subscribed will be 214 million.

Twenty six million shares in the invitation are reserved for priority application by Mayberry and its clients. Another 59.086 million shares are reserved for key partners. Reserve shares declined will become available to the general public, the prospectus indicates.

Granite Group has provided the company with capital of US$1.150 million (J$140 million) to cover start-up expenses and costs pending the invitation.

Managing director is Thwaites, a chartered insurer who spent 30 years with Globe Insurance Company of Jamaica and its predecessor entity, Globe Insurance Company of the West Indies, prior to its acquisition by Guardian Group, where he was managing director. 

He subsequently was a consultant and director of Grace Kennedy Financial Services Ltd and Jamaica International Insurance Company, respectively, prior to forming IronRock.

Chairman McConnell, a chartered accountant who owns St Elizabeth International, a private holding company.

Along with Granite Group, the company’s group includes associated entity IronRock Management, a vehicle for managing any staff share incentive schemes of IronRock.