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Key Insurance closes rights issue

Key Insurance Company Limited closed its new rights issue on Monday, January 11, 2021.

Company chairman Don Wehby today, “At this time, I can confirm the successful closure of Key’s Renounceable Rights Issue of 190,863,000 shares at a subscription price of J$3.50. 

“The preliminary basis of allotment and other relevant details will be submitted to the Jamaica Stock Exchange shortly and publicised thereafter.”

If fully subscribed, the company would have raised $668.02 million.

Key Insurance chairman Don Wehby

Key Insurance, in the final quarter of 2020, launched the issue with the aim of raising equity funding of approximately J$670 million.

The company offered existing shareholders the right to subscribe for additional shares in the company, in proportion to their existing stockholdings.

The offer was renounceable, meaning that existing Key shareholders could assign their rights to these shares to others.

The company indicates that excess shares would also be made available to Key shareholders indicating that they wish to acquire more shares than their allotment.

The rights issue opened on December 23, 2020 and closed on January 11, 2021. 

The last opportunity for Key shareholders to renounce their rights, wholly or in part, was January 2, 2021.

Previously, Wehby stated, “The capital the rights issue will raise will be critical to the implementation of Key’s vision and strategic plan, which focuses on achieving profitability targets and sustainable long-term growth, which in turn will provide an attractive return on investment to our shareholders.”

Wehby is also chairman and CEO of GraceKennedy (GK) Limited. In March 2020, GK, through its wholly owned subsidiary, GraceKennedy Financial Group Limited, acquired 65 per cent of the share capital of Key Insurance.

The chairman said the overall strategy implemented by Key’s board and management geared towards strengthening the company’s capital base so as to ensure regulatory compliance and future growth.