President and co-founder of FirstRock Capital Holdings Limited Ryan Reid (File photo)

First Rock IPO will definitely be upsized to $US18.48 million

President and co-founder of FirstRock Capital Holdings Limited Ryan Reid (File photo)

Caribbean Business Report can confirm that First Rock Capital Holdings Initial Public Offering (IPO) will be upsized by an additional 53 million shares to raise US$18.48 million.

This is coming from the initial amount of 106-million shares on offer in the IPO to raise US$12.32 million. Sources tell CBR that the IPO is going so well that the 106-million shares on offer have almost been fully subscribed within four days of opening.

Hence, the reason for upsizing the IPO by an additional 53,041,666 shares to raise US$18.48 million. First Rock Capital Holdings is an international business company incorporated in Saint Lucia but has bases in Jamaica, Cayman, Florida and Costa Rica.

Sygnus Capital is one of the co-arrangers of the initial public offering.

Caribbean Business Report understands that brokers associated with the IPO have reported that the take-up has been very strong and local investors are keen on buying into First Rock. The lead stock broker and arranger for the IPO is Sagicor Investments Jamaica while the co-arranger is Sygnus Capital Limited.

The shares are being offered at a price of J$ equivalent of US$0.12, which amounts to J$16.67 per share with the minimum subscription being 1,000 shares. The IPO, which opened on Monday, is slated to close on January 31.

However, our sources say given the overwhelmingly positive response from the investing public, there is likely to be an early closure of the IPO. When contacted today, First Rock President and co-founder, Ryan Reid, would not comment on the IPO. His only comment was, “We are extremely humbled by the IPO take-up so far.”

First Rock President and co-founder, Ryan Reid (Photo: Jamaica Observer)

He was questioned about preliminary reports indicating that the IPO is almost fully subscribed but Reid was adamant that he will not be drawn into offering a comment on the IPO at this time. He cited as his reason for offering no comment at this time, the Financial Services Commission (FSC) restrictions on divulging sensitive information while the IPO is still in progress.

He, however, confirmed that First Rock is awaiting the proceeds of the IPO to build out its 5 Seaview Avenue property in Kingston 6, which it recently bought for US$2.2 million. The 1.6 acre site, located in what is known as the Golden Triangle in St Andrew, is among the projects identified for capital deployment from the IPO.

According to information reaching Caribbean Business Report, preliminary work on the property is now on in earnest, as First Rock is keen on building out the property as soon as possible to cash in on the high demand for residential and commercial spaces in that section of the city. Having secured ownership of eight properties across the region, the three-year-old start-up real estate investment plans to acquire an additional three properties in the coming months.

The Shoppes at Rose Hall is one of three companies that First Rock is said to purchase within the next three months. (Photo: The Shoppes at Rose Hall)

These include The Shoppes at Rose Hall in Montego Bay, which is a six-acre complex that houses 29 shops, seven of which are unoccupied. First Rock also plans to acquire a 3.4-acre property on Bamboo Avenue in St Andrew, and an office building in Virginia, United States, which contains the leased offices of SunTrust Bank.  First Rock has seen its investment pipeline grown to US$44 million (J$5.8 billion).

Last Friday, First Rock hosted an investor’s briefings at its Seaview Avenue property where it was divulged that the company currently has $1.7 billion worth of transactions that it has entered into agreements awaiting to execute.

Sagicor Investments is the lead stock broker and arranger for the First Rock IPO.

Once the IPO is closed successfully, First Rock we will be able to execute on these transactions spread across various markets.