JAMAICA’S National Road Operating and Constructing Company Limited (NROCC) has launched a public offering to divest its remaining 20 per cent stake in TransJamaican Highway Limited (TJH), operator of the country’s key toll road, Highway 2000 East-West.

The offer for sale (OFS), valued at $6.3 billion (US$39.9 million), will open on March 4, 2025, and close on March 18, 2025. Priced at $3.60 or US$0.0228 per share, the sale offers up to 1.75 billion shares, with an option to upsize by an additional 750 million shares if oversubscribed which would increase the yield to $9 billion ($57 millon). A fully subscribed offer would result in NROCC’s ownership in TJH being reduced from 20 per cent to zero. The proceeds are earmarked to cover expenses related to the offer and for other uses determined by NROCC in consultation with the Ministry of Finance.

Alston Douglas, chairman of NROCC’s board of directors, described the OFS as a “historic opportunity” for Jamaicans to invest in a critical national asset. “This divestment aligns with our vision of broadening public ownership while ensuring sustainable growth for one of Jamaica’s most important infrastructure projects,” Douglas said in a statement.

The divestment represents the final phase of NROCC’s strategy to transfer ownership of TJH, operator of Jamaica’s Highway 2000 East-West toll road, to the public. The highway serves as a vital economic artery connecting Kingston to suburban hubs such as May Pen and Portmore. With this sale, NROCC aims to generate funds for national development while providing retail and institutional investors an opportunity to own a stake in one of the Caribbean’s largest infrastructure assets.

Prime Minister Andrew Holness indicated in his keynote address at the 20th Regional Investments and Capital Markets Conference hosted by the Jamaica Stock Exchange (JSE) in January that the divestment was imminent.

“The Government will soon be divesting 20 per cent holding in TransJamaican Highway Limited held through National Road Operating and Construction Company Limited. This will be undertaken by a public offer for sale. That’s something that the capital markets can look forward to,” stated Holness.

Transjamaican Highway Limited (TJH) successfully raised $14.1 billion in the largest initial public offering (IPO) on the Jamaica Stock Exchange (JSE) in an offer in February 2020. The IPO also attracted a record number of new investors, with 31,624 shareholders participating in the offering.

TransJamaican Highway Limited (TJH), incorporated in 2001, operates Highway 2000 East-West under a 35-year concession agreement with NROCC. The highway spans 49.9 kilometers and connects Kingston to May Pen and Portmore, serving as Jamaica’s only high-speed roadway linking the Greater Kingston Metropolitan Area to suburban towns. TJH’s operations are managed through its subsidiaries, Jamaican Infrastructure Operators Limited (JIO) and TransJam Highway Operators Limited (TJHO), which oversee toll collection and maintenance.

The company plans to extend the highway network and add new access points to improve connectivity. It has already received approval to acquire the concession for Phase 1C of Highway 2000 –May Pen to Williamsfield — for US$20.3 million, subject to contract finalisation.

Since its initial public offering in 2020, TJH has made significant strides in expanding its operations and improving efficiency. Notably, it acquired JIO in 2022 to reduce operational costs associated with toll collection and maintenance. The company has also implemented technological advancements such as automated toll systems and piloted innovative payment solutions like WhatsApp-based top-ups, further enhancing user convenience and operational profitability.

TJH has demonstrated consistent revenue growth driven by annual increases in traffic volumes and inflation-adjusted toll rates. This robust cash flow has enabled the company to maintain regular dividend payouts to shareholders. Its dividend policy prioritizes maximizing distributions while ensuring sufficient reserves for operational needs and compliance with financial covenants.

The company also faces potential financial strain from major maintenance expenses required under the handback provisions of its concession agreement. Upon the expiration of the concession in 2036, TJH must return the toll road to NROCC in a specified condition. This could require substantial expenditures for repairs and upgrades, impacting cash flows and compliance with reserve requirements.

TransJamaican Highway Limited (TJHL) reported a 30.7 per cent rise in net profit to US$31.3 million for 2024, driven by a 10.1 per cent increase in toll collections to US$82.8 million1. The company’s EBITDA margin expanded to 80.3 per cent from 78.8 per cent in 2023, reflecting operational efficiency gains, while earnings per share climbed to US$0.0025 from US$0.00191. Growth was fueled by higher traffic volumes and annual toll tariff adjustments under its 35-year concession for Jamaica’s Kingston-Portmore-May Pen highway1. The debt service coverage ratio improved to 3.04x, signalling robust capacity to meet obligations.

Investors can apply through platforms like GoIPO or JMMB Moneyline.