As a part of its mandate to cross-list shares in Guardian Holdings Limited (GHL), NCB Capital Markets Limited (NCBCM) executed on a market-making strategy to create liquidity in the stock on the Jamaica Stock Exchange (JSE). This initiative, along with the support of other brokers, saw over 2,550 new shareholders being added to the registry and over nine million GHL shares deposited in the Jamaica Central Securities Depository.

The strategy involved facilitating the move of GHL shares from Trinidad & Tobago to be traded on the JSE open market, as well as through the recently concluded Invitation for Offers to Purchase Shares in GHL, which was designed to ensure the widest possible participation. In line with the prospectus, the Invitation was closed at 4:30 pm on Friday, June 11, 2021. Over 1,790 investors participated and received 100 per cent allocation of the shares subscribed for.

The Invitation for the purchase of up to two million GHL shares was facilitated by NCB Global Holdings Limited (NCBGH) to assist in creating liquidity in the stock on the JSE. Since the launch of the Invitation, GHL shares traded consistently at an average price between $750 and $760. With this in mind, NCBGH has taken the decision to give a partial refund of $48.04 on every share that was allocated. This decision means that investors who participated in the invitation received the shares at an effective price of $746.96.

“We anticipate that this expanded investor base will support liquidity and price discovery for the GHL shares, which was the objective of the market-making process. In fact, since the shares were cross-listed on May 5, 2021, on the JSE, over 1.95 million units have traded. Furthermore, we would have observed significant momentum around the stock, resulting in the shares trading up by over 30 per cent on both the JSE and the Trinidad and Tobago Stock Exchange since the cross-listing took place,” said vice-president of investment banking at NCBMC, Herbert Hall.