First Rock to announce IPO results later this week
Having closed its initial public offering (IPO) last Friday (January 31), real estate, and equity investment outfit, First Rock Capital Holdings is set to announce later this week that it has raised the intended US$12 million initially being sought.
Lead arranger for the IPO, Sagicor Investments Jamaica has advised the Jamaica Stock Exchange (JSE) that the IPO, which opened on January 13, was formally closed as scheduled last Friday.
Sagicor, in a note to the JSE, reported that the basic allotment of subscribers would follow shortly. The note concluded that, “Sagicor Investments Jamaica Limited and First Rock Capital Holdings Limited thank our investors for their support of the offering.”
Up to 102 million shares were being offered at a price of Jamaican dollar equivalent of US$0.12, which amounts to $16.67 per share. Minimum subscription was 1,000 shares with the listing hoped to raise US$12.32 million.
The IPO was for 106 million shares, but the company reserved the right to upsize the offer by an additional 53,041,666 shares in the event of an oversubscription. This would see the IPO increasing to 159 million shares, and the capital raised rising to US$18.48 million.
The Business Observer understands that the principals of First Rock will exercise the option of upsizing the IPO. First Rock has already initiated the process of applying JSE for the shares to be traded on the main market as well as the US-dollar market.
The capital raised from the IPO will be deployed in its three target jurisdictions of Jamaica, Cayman, and the United States of America, namely Florida, where it has commercial and residential real estate.
First Rock Group recorded a profit attributable to shareholders of US$218,261 over the 23 months — August 2017 to September 30, 2019.
Total income during the reporting period was US$993,894, made up mainly of US$217,080 in interest from real estate-linked notes and other financial instruments, US$393,042 in property revaluation gains, and US$374,301 in foreign exchange gains.
— Durrant Pate