ONE Great Studio Limited’s (1GS) initial public offering (IPO) officially closed yesterday, a day after it opened and during which it garnered more than 4,000 applications.

The company, which is planning to list on the Jamaica Stock Exchange’s (JSE) Junior Market, published its prospectus on August 11, giving the public two weeks to apply for the offer where 1GS sought $338.63 million in fresh equity capital. All shares were priced at $1 in what was the first IPO for 2023.

1GS’s offer received ‘participate’ recommendations from five brokers, ranging from $1.08 to $1.57, last week. NCB Capital Markets Limited (NCBCM) and JMMB Securities Limited also published their own analysis and gave $1.19 and $1.15, respectively, as their target prices.

“One Great Studio is expected to grow revenues and net profit in the near to medium term as it continues to incorporate the search engine optimisation (SEO) business line within its existing business model, and benefit from increased brand visibility from listing. Given the positive outlook for the industry and company as well as the fact that the stock offers a potential total return of 19.3 per cent, which is above the cost of equity of 16.67 per cent, we are recommending that investors participate in One Great Studio’s IPO,” read NCBCM’s report on the IPO.

“We recommend One Great Studio Company Limited at buy/overweight given the company’s growth prospects and our estimation of a fair price of $1.15, which translates to a potential upside of 15 per cent. This offer is suitable for investors with a medium- to high-risk appetite and a medium-to long-term investment horizon as the company is in the growth phase of its life cycle,” the JMMB report stated, with the recommendation speaking to exposure on the asset being 10 per cent of one’s total portfolio held at JMMB.

With the offer officially closed the preliminary basis of allotment should be published on the JSE’s website within six business days after the closing date, which is by September 6. Allocations, investor statement, and refunds should be done within 10 days of the closing date as well. All applications submitted through Barita Boss will see the refunds sent to the associated broker of the JCSD account. If the JSE listing committee approves the admission of 1GS to the Junior Market it would be listed within five business days. 1GS would become the 49th company on the Junior Market if listed.

Other public market offers which have yet to occur include 138 Student Living Limited’s additional public offering and Jamaican Teas Limited listing its subsidiary, Caribbean Dreams Foods Limited, at a future date after October 1.