First Rock Capital Holdings today launched its Initial Public Offering (IPO) to raise approximately US$12.32 million for up to 106 million shares in the start-up company.
The shares are being offered at a price of J$ equivalent of US$0.12, which amounts to J$16.67 per share. The IPO is slated to close on January 31. The minimum subscription is 1,000 shares.
While the IPO is for 106 million shares, the company has reserved the right to upsize the offer by an additional 53,041,666 shares in the event of an oversubscription. This would see the IPO increasing to 159 million shares and the capital raised increasing to US$18.48 million.
Sagicor Investments Jamaica is the one of the arrangers for the IPO and lead stock broker while the co-arranger is Sygnus Capital Limited. The basis of the allotment will be on a first come first served basis, subject to the discretion of the Board of Directors.
The company intends to apply to the Board of the Jamaica Stock Exchange for admission of the shares to be traded on the main market as well as the US dollar market. First Rock Capital Holdings is an international business company duly incorporated under the laws of Saint Lucia.
Use of IPO funds
The capital raised from the IPO is to be deployed in accordance with First Rock’s strategy for realising targeted return on equity, while operating within a robust risk management framework. The company currently intends to focus initially on three target jurisdictions namely Jamaica, the wider Caribbean and the United States of America.
Within these jurisdictions there will be an emphasis on both commercial and residential real estate.
The First Rock Group recorded a profit attributable to shareholders of US$218,261 over the twenty-three month period August 2017 to September 30th 2019. Total income during the reporting period was US$993,894 which comprised mainly of US$217,080 in interest from real estate linked notes and other financial instruments, US$393,042 in property revaluation gains and US$374,301 in foreign exchange gains.