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Barita Investment Limited's signage is displayed on the edifice that serves as its headquarters in New Kingston, Jamaica (File photo)

Barita raises $10 billion targeted in just-closed APO

Barita Investment Limited's signage is displayed on the edifice that serves as its headquarters in New Kingston, Jamaica (File photo)

Barita Investments Limited has successfully raised the JM$10 billion initially sought after in its additional public offering (APO) of shares, which closed on Wednesday last as scheduled.

The initial APO offer is for 125 million ordinary shares at a price of $80 per share but the management is contemplating upsizing the offer by 62.5 million additional shares to raise the upward limit of $15 billion. The funds raised from the APO will be deployed in Barita’s growing investment pipeline.

In an advisory to the Jamaica Stock Exchange, Barita reports that, “further information with respect to the basis of allotment of the APO will be advised in due course at which point the decision respecting upsizing of the offer will also be communicated.”

The Jamaica Stock Exchange (File photo)

The investment and brokerage house thanked its team members, clients, shareholders, partners, regulators, co-broker and selling agents for their unwavering vote of confidence which led to this successful close of the APO.

The fact that Barita is able to pull in JM$10 billion in equity capital indicates the strong market support for the company, despite lingering questions about certain financial transactions involving itself; parent company, Cornerstone Financial Holdings; Barita Finance, which is not a subsidiary of Barita Investments.

(Photo courtesy Barita)

In addition some market watchers have questioned why Barita went back into the market looking for additional capital, eight months after having secured $13.5 billion in its first APO. This capital raise constitutes Barita’s fourth major capital raise in less than two and a half years.

Speculation and interest in the operations of Barita and its principals continue unabated surrounding certain financial transactions in the eastern Caribbean, prompting Jamaica’s Financial Services Commission (FSC) to intervene, insisting that an addendum to the second APO prospectus be done, which has since been executed.