KINGSTON, Jamaica - NCB Financial Group Limited (NCBFG) announced last week its intention to issue additional ordinary shares by Additional Public Offering (APO) following a resolution passed by its Board of Directors on September 8, 2023.

The company has further stated that it expects to issue up to 300,000,000 new ordinary shares.

The decision to issue additional shares forms part of NCBFG’s capital and cost optimisation strategies designed to maintain financial strength and soundness, and accelerate growth, which should enable a return to consistent and sustainable dividend payments to its shareholders (both existing and new), NCB said in a statement on Monday.

“The proceeds will be used to reduce debt and interest expenses and bolster capital. The proceeds will not be used to pay dividends. Dividends are paid from the profits of the company. As highlighted at its last investor briefing, NCBFG has seized and initiated action on annualised savings in excess of J$8 billion, which translates to J$3.24 per share,” the statement read.

NCBFG interim Group chief executive officer Robert Almeida stated, “NCBFG remains a strong diversified regional franchise, with a strong track record of performance and value creation. With our capital and cost optimisation strategies well underway, our shareholders can trust our commitment to both rewarding them and maintaining strong fiscal responsibility. The APO is one among a set of initiatives underway to achieve these goals and build NCBFG’s position as a financial fortress.”

Additionally, NCB said further details about the share price, specific duration and size of the offering will be advised in due course by way of prospectus, and details pertaining to the extraordinary general meeting which was previously announced will be communicated in a subsequent notice.