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JMMB's headquarters in New Kingston, Jamaica (Photo: JMMB)

JMMB offers two new preference shares

JMMB's headquarters in New Kingston, Jamaica (Photo: JMMB)

JMMB Group Limited is inviting public subscriptions for 1,500,000,000 cumulative redeemable 7.35 per cent fixed-rate JMD preference shares with no par value at a fixed price of JM$3.00 per share.

The company is also offering 500,000,000 cumulative redeemable 7.15 per cent fixed-rate JMD preference shares with no par value at a fixed price of J$3.00 per unit.

Should the company realise full take-up of the 7.35 per cent preference shares, it would raise new capital in the region of JM$4.5 billion. In terms of the 7.15 offer, the total would be JM$1.5 billion.

JMMB indicated that it will invest the new funds in the next phase of its growth. According to the prospectus, over the last five-year period — between the financial year ended March 31, 2015, and the financial year ended March 31, 2020 — the group has almost doubled its asset base from JM$217.71 billion to JM$400.22 billion.

JMMB’s financial services centre in Montego Bay, Jamaica (Photo: JMMB)

Net profit has likewise grown, moving from JM$2.05 billion to JM$7.07 billion, over the same period. 

The company has secured the ability to upsize in either or both classes, subject to a maximum of 3,000,000,000 preference shares across both offers. Subscription will open on February 16, 2021,  and close on March 9, 2021.

JMMB has extended the invitation with respect to the 7.35 per cent fixed-rate JMD preference shares solely to clients. However, a client may apply for the subscription as the primary shareholder but jointly with applicants who need not be clients. 

On the other hand, the invitation with respect to the 7.15 per cent fixed rate JMD preference shares is solely for non-clients.

JMMB’s value proposition

Archibald Campbell, chairman of JMMB Group Limited, said in his letter to potential investors, “We are …inviting you, our current holders of preference shares, clients, ordinary shareholders, team members, purchasers of services from the Group and members of the general public in Jamaica to participate in this next phase of our growth. 

In this 2015 photo, (from left) JMMB Chairman Archibald Campbell, Group Chief Financial Officer Patrick Ellis, and Group Chief Executive Officer Keith Duncan exchange views at the JMMB investor briefing on Wednesday at the Jamaica Pegasus Hotel in Kingston. (PHOTO: ASTON SPAULDING/JAMAICA OBSERVER)

“We do so as we expect that investors will benefit from significant value to be created from our strategic imperatives. We invite you to diversify and grow your portfolio with us by taking full advantage of this attractive Invitation.” 

The prospectus outlined that, assuming the 7.35 per cent fixed rate prefs  are issued on March 19, 2021, the first dividend payment will become due and payable on April 19, 2021. 

Thereafter, dividends will be due and payable monthly on or around the 19th day of each month until maturity on March 19, 2028. 

The prospectus said that, assuming the 7.15 per cent preference shares are issued on March 19, 2021, the first dividend payment will become due and payable on April 19, 2021. 

Thereafter, dividends will be due and payable monthly on or around  the 19th day of each month until maturity on March 19, 2028.