COVID-19 derails Proven Investment’s additional public offer

Lead broker of Proven Investments Limited (Proven), Proven Wealth, has advised its Additional Public Offering (APO) of new ordinary shares closed on June 5, but no new shares will be issued.

Group leaders Johann Heaven and Christopher Williams, indicated that the project was derailed by COVID, but they are watching the markets closely and will re-offer the APO when things improve.

Proven Investments Limited (PIL), an investment company listed on both the J-Dollar and USD markets of the Jamaica Stock Exchange (JSE), had made the public an offer of new ordinary shares priced at $38.64 or US $0.28 each in early March.

President & CEO PROVEN Management Limited

However, by March 10, one day before the offer was set to open, the Government of Jamaica announced the island’s first COVID-19 case with increasing infections leading to a changing economic climate.
Proven suspended acceptance of applications for shares in the APO on March 13, and rejected all applications tendered. Applicants have since been re-imbursed.
The company had originally targeted around J$4 billion in new capital.

In its prospectus issued on March 2, PIL indicated that it aimed to deploy capital for real estate development projects and additional investments in the regional acquisition of financial services sector.

The company began in 2010 when it raised US$20 million by way of a private placement of ordinary shares, and later that year, an additional US$9.7 million by a rights issue of additional ordinary shares.

In July 2011, ordinary shares were introduced as the first listed ordinary shares on the USD Market of the JSE.

The company has subsequently raised additional funding through rights issues of ordinary shares, preference share issues, and debt issues.

Company chairman Hugh Hart said in the March prospectus that while the company was  likely to  seek investments in its core areas of expertise, such as financial services, the company would also  consider investments in the real sector.