CAB lists on Junior Market — first company for 2020
Insurance brokerage firm Caribbean Assurance Brokers Limited (CAB) on Monday became the first company for 2020 to list its shares on the Junior Market of the Jamaica Stock Exchange (JSE), thus increasing the total listed securities on the markets of the JSE to 124.
Through its initial public offering (IPO) of 52.5 million ordinary shares at a subscription price of $1.91, CAB was able to raise equity capital of $100 million and increase its total shareholders to 3,245.
According to JSE, CAB’s IPO was oversubscribed by 1,500 per cent and closed within a minute of opening on February 18.
Of the total shares that were offered, 8,137,500 were ordinary shares made available to the general public at the listed unit price, which will be allocated on a first come, first served basis.
The rest were reserved shares, available at the listed price and broken down as follows: 6,300,000 shares for a select number of directors of the company; 5,775,000 million for a select number of staff members of the company; 27,037,500 shares for a select number of long-standing clients of the company; and 5,250,000 for clients of the lead broker, Mayberry Investments.
The company intends to use the net proceeds of the IPO to pay IPO and listing expenses, expand its brokerage operations to other Caribbean territories, provide working capital for the company, and expand the company’s solar photovoltaic system.
“We started the company by having innovative products for which we have the distribution rights, not only in Jamaica but across the region. We also ensured that we had a relationship with our reinsurers, which most brokerages don’t have in starting. To show our innovativeness, most of our energy comes from renewables — and that helps to cut the cost of our electricity bill. We are very happy to have had an over subscription of our stock by investors. I now welcome all our new shareholders and we endeavour to create more value for them,” said Raymond Walker, chairman and chief executive officer of CAB at the company’s listing ceremony held at JSE’s Kingston office.
Marlene Street Forrest, managing director of JSE, also congratulated CAB on this feat and called on brokers to encourage other companies to raise capital and list on the JSE.
