The National Road Operating and Constructing Company Limited (NROCC) is hoping to raise $11.3 billion in its initial public offering which opened today.
It has invited the public to buy up to eight billion ordinary shares in the TransJamaican Highway Limited, the highway operating company.
Shares are priced at J$1.41 or US$0.01 each. It also has the option of upsizing the offer by another two billion shares.
Brokered by NCB Capital Markets Limited, the Offer for Sale opened at 9:00AM on 17 February 2020. It will close on March 9, 2020.
If the offer is successful, the company will apply for listing for listing on the US dollar Main Market of the Jamaica Stock Exchange (JSE) and cross-listing on the J dollar Main Market of the JSE.
Reserve shares number 5,362,962,963 and have been set aside for priority applicants who include employers of TJH, eTag purchasers.
The offer to the public is 2,637,037,037 shares at J$1.41 or US$0.01 per share.
Up to 88,888,889 shares are reserved for purchase by employees of TJH and its key operating parties at a purchase price of J$1.41or US$0.01 per Share.
Specifically, at total of 296,296,296 Shares are reserved for purchase by eTag customers for Highway 2000 EastWest leg on record as at February 14, 2020 at a Purchase Price of J$1.41 or US$0.01 per share.
Up to 829,629,630 Shares are reserved for purchase by public sector employees at a purchase price of J$1.41 or US$0.01 per Share.
Shares have also been reserved for the issue’s underwriters up to 2,074,074,074 at a purchase Price of J$1.41 or US$0.01 per Share.
The last category of reserved shares are for registered pension funds who can buy up to 2,074,074,074 shares at J$1.41 or US$0.01 per share.
The prospectus indicates that, except for the underwriters, if any of the reserved shares in any categories listed are not purchased by the assigned beneficiaries, the excess will be made available for purchase by the applicants in the other reserve categories at the purchase price.
After this, if there are any shares remaining, they will become available for purchase by the general public at the purchase price.
The prospectus states that the, the Underwriters may only upsize their share allocation from the shares available to the general public.
NROCC also reserves the right to “upsize” the Offer by offering an additional 2,000,000,000 Shares in the capital of the company.
The TJH road network is the main link between the capital city of Jamaica, Kingston, and other populated urban and industrial centers including the cities of Portmore and May Pen.
Applications should be made via GoIPO (https://goipo.jncb.com/) and Moneyline (moneyline. jmmb.com/personal/) for JMMB customers or any other digital platform as may be notified by NROCC.