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FESCO partners with NCB Capital Markets to become first listed fuel network on JSE

Future Energy Source Company (FESCO) and NCB Capital Markets Limited (NCBCM) are set to engage in an exciting financial partnership.

Herbert Hall (left), Vice President Investment Banking NCB Capital Markets and Simone Hudson-Bernard, Manager, Origination and Structuring, NCB Capital Markets, engages (l-r), Errol McGaw, Treasurer FESCO, Lynden Heaven, Chairman FESCO and Junior Williams, Company Secretary FESCO.

This, through an engagement that will see NCBCM, the wealth and asset management arm of the National Commercial Bank Jamaica Limited acting as lead broker and arranger for FESCO’s upcoming initial public offer (IPO).

FESCO is set to become the first fuel network in Jamaica to present an initial public offering of shares and will seek approval from the Jamaica Stock Exchange’s (JSE) for its shares to be listed on its Junior Market. 

This move comes as part of FESCO’s capital projects that is expected to culminate with the company going to market for equity financing by the fourth quarter of 2020. Through their Small and Medium-size Enterprises (SME) initiative NCBCM is now set to guide the fast-growing fuel network towards that goal. 

“We are delighted to have been afforded the opportunity to act as arranger for yet another historic transaction.”

– Vice President, Investment Banking at NCBCM, Herbert Hall

Vice President, Investment Banking at NCBCM, Herbert Hall, is excited about this latest project, with NCBCM having ended 2019 on a high, after being awarded as the top member dealer and brokerage house for revenue generation and market activity.

“We are delighted to have been afforded the opportunity to act as arranger for yet another historic transaction. We continue to partner with our SMEs who are seeking to further their growth and development while presenting Jamaicans with an opportunity to participate in attractive investments,” said Hall. 

NCBCM has been very active in the market having acted as lead broker for several IPOs of SMEs including Mailpac Group Limited and The Limners and Bards (The LAB) which were listed on the Junior Market last year. The company was also responsible for several Main Market listings throughout 2019, putting a cap on what could be described as a very good year.

Lynden Heaven (second-right), Chairman of Future Energy Source Company (FESCO) signs the MOU that will see NCB Capital Markets become the lead broker and arranger of the fuel network’s initial public offering of shares (IPO) later this year. Looking on are NCB Capital Markets’ Simone Hudson-Bernard (left), Manager, Origination and Structuring, Herbert Hall (second-left), Vice President Investment Banking and Jeremy Barnes (right), Chief Operating Officer (FESCO)

2020 has started no differently, as NCBCM is the lead broker and arranger for the Trans-Jamaican Highway IPO, which is seeking to amass up to $14.1 billion in capital, the largest in Jamaica’s history.

FESCO is taking steps to list on the Junior Market, which caps the amount of capital that any one company can raise from investors at $500 million. Incorporated in 2013, the fuel network currently boasts 14 service stations in areas such as Mandeville, Portmore, Rock Hill, Stony Hill, Angels, Duncans, Montego Bay, Golden Grove and Lacovia.

NCB Capital Markets is the lead broker and arranger of FESCO’s IPO set for late 2020.

Through its infrastructural development mandate, FESCO has plans to add seven more locations to the chain by the end of 2020, with work well underway on a $300 Million, 1.5 acre, Ferry Complex, destined to become the fourth and largest FESCO ‘Destination Service Station’.

FESCO has also announced the development of a complex to house their headquarters in Kingston, which will also include their first company owned-company operated service station.

NCBCM is the oldest operational brokerage house in the English Speaking Caribbean and a pioneer of the Jamaican equity market. With a focus on facilitating a vibrant stock market in Jamaica, NCBCM has applied innovation to their operations, resulting in the development of the GoIPO online trading platform, which was launched in April 2019.

This first to market platform automates and accelerates submissions of applications for IPOs to the Jamaica Central Securities Depository at the Jamaica Stock Exchange. With the latest addition, customers can now open their investment accounts using the GoIPO platform- another first for NCBCM.