Cambio and remittance services provider Alliance Financial Services Limited, which is offering for sale up to 1,252,294,335 ordinary shares at $1.59 per share, has postponed the opening of the initial public offer (IPO) to January 28, 2021.
In a notice on the Jamaica Stock Exchange website, Monday, December 28 — the day when the IPO should have opened — the company explained that subsequent to the publication of the prospectus, “Directors of the selling shareholders were made aware of a matter relating to a separate entity in which they are connected parties.”
“After publication, the selling shareholders have deemed it prudent to suspend the offer until January 28, 2021 and anticipate that the matter will be resolved shortly,” Alliance Financial Services outlined further.
The company had previously registered the prospectus with the Financial Services Commission.
Consequent to the suspension of the offer, the closing date has also been extended to a new date to be announced.
They stated, “We appreciate and are heartened by the overwhelming interest we have received thus far and regret any inconvenience that this may cause to our stakeholders, lead broker and the general public.”
Alliance is targeting listing on the main market of the JSE via the IPO, proceeds of which they will use for expansion.
The company hopes to raise in the region of JM$1.9 billion dollars. Alliance says in its management discussion and analysis in the prospectus that it is in discussions with several entities to expand its sub-agent network locations.
“It is anticipated that the network will increase from sixty-six to over one hundred locations by the end of the second quarter, 2021,” the prospectus read in part,
Allied Financial Services also said it continues to look at other opportunities in the remittance space as it is currently examining the possibility of partnering with other international remittance companies.
In 1996, Peter and Robert Chin, the founders, began establishing what would become several companies under the “Alliance” brand.