JAMAICA Money Market Brokers (JMMB) aims to raise $751 million from its preference share offer in order to further fund the financial institution’s growth.
The offer of 363 million redeemable preference shares forms part of JMMB’s continuing capital management strategy, stated the group in its prospectus released this week to the Jamaica Stock Exchange (JSE).“This offer will enable the JMMB group to continue its business line diversification strategies and expansion into new markets locally and regionally. In addition, the group will continue to explore new acquisition targets, thereby building its long-term sustainable shareholder value,” stated the JMMB prospectus.The offer runs from August 21- 30 and the shares will be redeemed in August 2018.The shares will be issued in two tranches, including 313 million cumulative redeemable 7.5 per cent preference shares at $2, and 50 million redeemable 7.25 per cent preference shares at $2.50. JMMB will apply to the Jamaica Stock Exchange to list these preference shares on the exchange.JMMB chairman Dr Noel Lyons indicated mutual benefits for shareholders and JMMB with the planned offer.“We invite you to diversify and grow your portfolio with us by taking advantage of this attractive offer, which was designed based on client demands for low-risk instruments with better returns,” stated Lyons.The JMMB prospectus indicated that over the next three years (2016) the group would:* apply to upgrade its merchant bank licence to a commercial banking licence;* grow its capital markets and unit trust business;* finalise the acquisition of the remaining 50 per cent shares in Trinidad-based IBL Banking Group (which consists of a commercial, bank and a merchant bank; and* complete the acquisitions of Corporacion de Credito America (CCA) and Banco Rio in Dominica Republic.In 2011, JMMB’s issued $2.76 billion worth of preference shares to the market. The funds were used to further strengthen the company’s local and regional presence. The shares were subsequently redeemed in accordance with agreed terms.“The JMMB group continues to grow stronger with steady profitability each year and we want to ensure that all Jamaicans have an opportunity to share in our success and grow with us. Following the immense success of our preference share offer in January 2011, which saw a 33 per cent oversubscription, we are pleased to announce a new preference share offer,” added Lyons.JMMB, with a client base of over 200,000, made record net profit of $3.8 billion on $8.2 billion in revenues for its March year end. It holds capital of $17 billion on $166 billion in total assets.Founded by the late Joan Duncan, JMMB opened in November 1992 as the first Money Market broker and dealer in Jamaica. With the support of Lyons of Jamaica Venture Fund Ltd, Duncan established JMMB with J$16.5 million from four major institutions.View the original article here
JMMB seeks $751m from pref offer
