Quantas Advantage Inc is seeking to raise between US$9.38 million to US$15.47 million ($1.52 billion to $2.50 billion) in its initial public offering (IPO) to expand its investment portfolio.

Quantas Advantage is a Barbadian company which acts as an investment vehicle that invests in structured finance and securitised assets. This means that the company provides capital to businesses across the Caribbean for working capital and private debt capital solutions that are supported by predictable cashflows. This strategy has yielded an investment portfolio worth US$20.74 million and an asset base of US$30.18 million as of September 2025.

“For 2026 financial year, the company is experiencing a strong pipeline of investment opportunities in structured finance and securitised assets, which has prompted us to enter the market to raise equity capital via this initial public offer,” said Quantas Advantage chair and co-founder Jacqueline Sharp in a letter to prospective investors.

Quantas Advantage’s structured finance pillar includes short-term financing to businesses for receivables, inventory and payables. This allows a business to access cash earlier to support ongoing operations, having the necessary products to sell to customers and settle obligations to vendors earlier than planned.

Quantas Advantage also invests in private debt capital solutions such as debt refinancing, structured debt financing and mezzanine debt solutions to assist businesses with optimising their capital structures. An example of this strategy is when Quantas lent $285 million at 14 per cent for five years to Atlantic Hardware & Plumbing Company Limited as part of the March 2024 acquisition by Construct Group Limited, General Accident & Insurance Company Limited and Lumber Depot Limited.

The company’s securitised asset pillar represents its investment into securitised assets which are backed by pools of predictable cashflows such as leases, mortgages, and loan receivables. This approach helps to support the asset backed securities market in the Caribbean.

Quantas Advantage intends to expand its business by formalising and expanding its partnerships with brokers/securities dealers, strengthen its deal origination, participate in more syndicated deals and diversify its portfolio of investments. The company is targeting regional expansion into markets such as the Cayman Islands, Dominican Republic, and the Bahamas as it continues to scale the business.

“The [IPO] funding will allow us to take advantage of attractive investments that are in our pipeline. Overall, the company is on a growth trajectory that will see us surpassing our historical performance,” Sharp added regarding the company which was incorporated in June 2022.

Quantas Advantage’s total revenue grew 14 per cent to US$2.78 million for the June 2025 financial year (FY). After accounting for operating expenses and taxes, net profit improved 12 per cent to US$1.93 million.

Quantas’ total assets grew 60 per cent to US$31.23 million as it held US$13.17 million in repurchase agreements and US$16.35 million in financial assets. The expanded balance sheet was due to the company accessing a US$10.70 million secured note which is scheduled to mature in February 2027. Shareholder’s equity marginally moved up to US$19.05 million.

For the company’s first quarter ending September 2025, its net interest income grew 21 per cent to US$551,268 with net profit rising 61 per cent to US$237,294 as operating expenses remained flat.

“Quantas invests in the structured finance and securitised assets industry. Our investments bridge the gap between businesses seeking flexible financing and investors seeking structured assets with sustainable risk adjusted returns,” the prospectus stated.

Quantas Advantage (QA) is chaired by Sharp and has Alistair Dent and Angela Robinson as non-executive directors along with Vaughn McDonald, Craig Hendrickson, Pierre Williams and Gabrielle Banbury-Kelly as independent directors. Quantas Management Inc, a Barbadian investment company which acts as the investment manager of Quantas Advantage, has Sharp, Dent, Robinson and Mathhew Lyn as directors. Pierre Williams is also a director of Sygnus Real Estate Finance Limited.

Quantas Advantage is managed Quantas Management Inc and earns an annual management fee of two per cent on total invested capital (debt plus equity). Quantas Management also earns a performance incentive fee of 20 per cent on any return on equity (ROE) above QA’s hurdle rate of eight per cent. Quantas Management in turn outsources the investment advisory and transaction structuring services to Quantas Capital Limited. Quantas Capital is a Jamaican securities dealer which is run by co-founder and Chief Executive Officer Dr Adrian Stokes alongside executives like Stanley Thompson, Layne Atkinson, Cherice Lee, Franklyn Anderson and Akili Sterling.

Quantas Investments Limited is currently the largest shareholder in Quantas Advantage prior to the IPO with a 30.83 per cent stake in the entity. The Jamaican company has Dr Stokes, Sharpe and Matthew Lyn as directors and Manor Caribbean Holdings Inc as its sole shareholder. Manor Caribbean Holdings also owns 1.21 per cent of Quantas Advantage and is connected to co-founder Sharp. This Barbadian company also owns 100 per cent of Quantas Management and Quantas Capital.

Other notable investors include the Hendrickson controlled Continental Baking Company Limited, Jamaica Money Market Brokers Limited, Jorden Investments Limited, Barita Investments Limited, Ravers Limited and several Jamaican pension funds.

If Quantas Advantage is listed on the JSE’s Main and USD markets, it would become the first Main market IPO since Sygnus Real Estate Finance’s listing in October 2021. However, Quantas Advantage must issue at least 25,785,000 common shares (US$3.09 million/$500.08 million) in order for the offer to be successful.

Quantas Advantage has a dividend policy of paying at least 85 per cent of annual net profits to shareholders as cash dividends. The company paid US$1.74 million in Q1 2025 and Q1 2026 (July to September) to shareholders, translating to a dividend payout ratio of 103.80 per cent and 90 per cent, respectively. The total dividends paid of US$3.53 million equates to 22 per cent of the company’s existing share capital. As a Barbadian company, dividends paid to Jamaican investors won’t be subject to withholding taxes due to the Caricom double taxation treaty.

There are 41,666,667 common shares reserved for anchor investors who must subscribe to a minimum of 18,518,519 common shares at US$0.1080/J$17.4547 per share. Another 19,736,842 common shares are reserved for strategic investors which includes employees and directors of Quantas related entities and investors that subscribe to a minimum of 8,771,930 common shares at US$0.1140/J$18.4244 per share.

Non-reserved investors or the general public must subscribe to a minimum of 1,000 common shares (US$120/J$19,394.10) and apply in increments of 100 common shares (US$12/J$1,939.41). There are 21,875,000 common shares available to the general public with an upsize limit of 80,728,708 common shares. The JCSD processing fee of $172.50 is payable per application. JMMB clients can apply from the proprietary Moneyline platform while non-JMMB clients can apply on https://moneylineipo.jmmb.com/.

The offer opens on April 22 and is scheduled to close by May 21 with JMMB Securities Limited acting as the lead arranger.