Key Points:

IPO to raise growth capital: Quantas Advantage is seeking to raise US$9.38 million, with an option to upsize to US$15.47 million, to expand its structured finance and securities asset businesses.

Financing demand rising: The company says Jamaican businesses are facing higher costs from energy, taxes and wages, increasing demand for working capital and resilience financing.

Big market opportunity: Quantas estimates Jamaica’s securitised assets market could be worth US$11.8 billion, with plans to expand further across the Caribbean.

WITH companies set to face increased inflationary pressures in the upcoming months, Quantas Advantage Inc is positioning itself to meet those capital needs while improving returns for investors.

“The geopolitical issues are very unfortunate, and we hope that these matters are resolved diplomatically. What it shows is that businesses need financing to improve their resilience — we’re seeing that when we interact with our customers,” said Dr Adrian Stokes, co-founder and chief executive officer (CEO) of Quantas Capital Limited.

Dr Stokes responded to a question about the timing of Quantas Advantage’s initial public offering (IPO) which had a briefing on Friday. Quantas Advantage is seeking to raise US$9.38 million ($1.52 billion) with an option to upsize up to US$15.47 million ($2.50 billion). These funds would be used to acquire more assets under the company’s structured finance and securities asset business lines.

Quantas currently lends money to Jamaican businesses under its structured finance business line which includes medium- to long-term debt solutions and working capital solutions for receivables, inventory and payables. These funds are provided to businesses in sectors such as construction, manufacturing and distribution.

“We’re seeing the demand for capital to invest in many different areas to improve resilience, product diversification, retrain staff, and do a number of things,” Dr Stokes added on the increased demand for capital by customers.

Jamaican businesses are currently set to face higher energy costs, which will no longer be partially subsidised by Petrojam Limited. This is on top of other inflationary events like the new taxes announced by the Government and an increased minimum wage, which will push up security and labour costs.

This is compounded by a relatively tight market where interests remain relatively elevated while investors look towards some level of stability via stable cash flow assets.

Dr Stokes is positing Quantas Advantage as a vehicle to bridge these gaps in what is a potential US$11.8-billion opportunity for securitised assets in Jamaica.

“The biggest demand right now for securitised assets will come from large institutional investors like broker dealers, pension funds. [In] the next phase of growth we want to broaden the entities that we do business with,” the Quantas CEO explained on the planned expansion of the business.

He pointed to managed funds such as unit trusts and managed portfolios, along with high net worth and accredited investors as those who would be interested in their securitised asset portfolio. Stanley Thomspon, Executive Vice President, Structuring & Product Innovation at Quantas Capital, noted that the Barbadian company did US$96 million in securitised assets last year.

Quantas Advantage sells its securitised assets at the end of each financial year and recycles that capital into new opportunities. The company is open to co-invest in deals and enter syndicated deals as it posits itself to support businesses across the region. It is currently positioning 60 per cent of its business to be structured finance.

Quantas Advantage’s total revenue grew 14 per cent to US$2.78 million, with net profit rising 12 per cent to US$1.93 million for the June 2025 financial year (FY). It had US$31.23 million in assets which included US$13.17 million in repurchase agreements and US$16.35 million in financial assets.

While the company does do some deals in the region, it plans to take its proof of concept from Jamaica to other regional markets to support those businesses while remaining in its risk framework. The IPO opens on April 22 and is scheduled to close by May 21.

“The Bahamas and the Cayman Islands would be the two markets that we like, and we will look at particular opportunities as they arise in places like Dom Rep,” Dr Stokes closed.