NCB Global Holdings Limited (NCBGH), which placed two million shares in Guardian Holdings Limited on the market, indicated this week that it will return some funds to those who subscribed to its offer.
Following Guardian’s recent listing on the Jamaica Stock Exchange, the public was offered the shares on terms issued in a prospectus released on May 18, 2021.
The invitation price was J$$795.00 per ordinary share and, if fully subscribed, would have raised J$1.59 billion for NCB Global Holdings, which owns a 62 per cent stake in Guardian, a Trinidadian company offering diverse financial services.
The offer closed on June 11, with all categories of buyers receiving their full allocation.
However, subsequently, on June 15, broker NCB Capital Markets Limited further advised that it would give back a part of the purchase price to buyers, as “Since the launch of the Invitation, GHL shares traded consistently at an average price between $750 and $760′.
“With this in mind”, it was stated, the seller, NCBGH, has taken the decision to give a partial refund of $48.04 on every share that was allocated.
The level of subscription for the offer was not disclosed, but a floor of 1.5 million shares was set by the broker as the level for a successful offer.
In the May prospectus, investors were offered, by implication, an immediate gain as the stock reached $899.85 per unit in trading.
However, subsequent to the offer, the share price declined.
NCB Cap said that with the refund offered, “investors who participated in the Invitation would receive the shares at an effective price of $746.96.”
-Caribbean Business Report