Investors chase Spur Tree stocks on first day of listing
An array of Spur Tree Spices' bottled seasonings

After going public on the Jamaica Stock Exchange's (JSE) Junior Market on January 14 (last Friday), investors came out in droves with more than 800 bids and $150 million to purchase shares of Spur Tree Spices Jamaica Limited in the first listing of 2022.

Spur Tree's price closed 32 per cent higher to $1.32 which values the company at $2.21 billion in market capitalisation. After halting as the market opened at 9:30 am from three units trading at $1.30, Spur Tree ended the day with 17 trades and $74,671.02 in value traded. This was due to the JSE circuit breaker limiting the stock from going any higher.

Even as some orders expired during the day, $146.76 million across 528 bids was still present while there was less than $5.86 million across 75 sell orders remained. With a reference price of $1.32, Spur Tree could possibly go to $1.75 on its second day of trading tomorrow.

Spur Tree's initial public offering closed two days after opening on December 31 where it was able to raise $335.39 million in fresh equity capital. Though more than half of the offer was available for subscription to the general public at $1 per share, the basis of allotment only saw investors being guaranteed the first 10,000 units and 11.76 per cent on the remaining balance due to $1.3 billion in subscriptions.

— By David Rose

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