Jamaica-based Alliance Financial Services Limited, on January 28, 2021, issued an additional notice indicating that the company’s initial public offering will remain suspended and the closing date extended until further notice.
The cambio and remittance service provider, which had offered for sale up to 1,252,294,335 ordinary shares at $1.59 per share, in December put off the opening of the offer for January 28, 2021.
Now, however, the company has suspended the IPO indefinitely.
Just last month, the directors explained that subsequent to the publication of the prospectus, “Directors of the selling shareholders were made aware of a matter relating to a separate entity in which they are connected parties.”
The prospectus, it was noted, had been previously registered with the Financial Services Commission.
“After publication, the selling shareholders have deemed it prudent to suspend the offer until January 28, 2021, and anticipate that the matter will be resolved,” the directors said then.
Alliance had targetted listing on the Main Market of the Jamaica Stock Exchange via the IPO, proceeds of which they would have used for expansion.
The company hoped to raise in the region of JM$1.9 billion dollars. In the management discussion and analysis section of the prospectus, Alliance revealed that it was in discussions with several entities to expand its sub-agent network locations.
“It is anticipated that the network will increase from sixty-six to over one hundred locations by the end of the second quarter, 2021,” the prospectus further outlined.
The Company also noted also noted it continues to look for other opportunities in the remittance space as it is currently examining the possibility of partnering with other international remittance companies.
In 1996, Peter and Robert Chin, the founders, began establishing what would become several companies under the “Alliance” brand.