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Proven Investments Limited's office on Haining Road in New Kingston, Jamaica (Photo weareproven.com)

Proven faces USD limit for APO offer

Proven Investments Limited's office on Haining Road in New Kingston, Jamaica (Photo weareproven.com)

Proven Investments Limited (PROVEN) is advising the public that based on the applications for subscriptions it has already received for the additional public offering (APO), remaining subscriptions are limited to Jamaican dollar buys.

The company outlined that, in compliance with the Bank of Jamaica (Dealings in Foreign Currency Instruments) (Proven Investments Limited) (Additional Public Offer for issuance of US dollar shares) (Exemption) Order, 2020, it will only be accepting Jamaican dollar-denominated applications for subscription with effect from 25th January 2021.

(File photo)

The subscription price for the new shares from the company, as laid out in the prospectus, ranges between US$0.2200 per new ordinary share (if paying in USD) or J$32.10 (if paying in J$) to US$0.2300 (J$33.50) depending on the category (reserved or public).

Existing shareholders will pay US$0.225/J$32.80 per new ordinary share. Between today and the day of closure, however, only Jamaican-dollar payments are being accepted.

“While we are more likely to seek investments in our core areas of expertise, such as financial services, we remain alert to take advantages of opportunities as they arise…”

— Hugh Hart, chairman, Proven Investments Limited

Proven is also reminding that the APO is scheduled to close at 4:00 pm on Friday, January 29, 2021. 

Due to the effect on the exchange rate, when the US-dollar is in high demand, the BOJ seeks to limit US dollar issues.

Prospectus details

Last week, the company advised that based on the applications for subscriptions it has received, the company will be exercising its right to upsize the APO.

Given the effect that high demand of US dollars has on the exchange rate, The Bank of Jamaica is trying to reduce issue of US currency. (Photo: Jamaica Observer)

The offer, which opened on January 8 and closes on January 29, 2021, initially aimed to raise US$20 million, with an option to upsize to US$30 million.

The investment firm’s main business is the holding of tradable securities for investment purposes as well as the pursuit of  private equity opportunities

PROVEN’s Chairman Hugh Hart indicated that funds raised will be used as capital for real estate development projects and additional investments in the regional acquisition of the financial services sector.

Chairman of Proven Investments Limited Hugh Hart (Photo: PROVEN)

“While we are more likely to seek investments in our core areas of expertise, such as financial services, we remain alert to take advantages of opportunities as they arise, and, as we have in the past, will continue to regularly consider investments in the real sector,” he said

Growing forward

PROVEN started in 2010 when the company raised US$20 million by way of a private placement of ordinary shares. The company has since then raised additional funding through rights issues of ordinary shares, preference share issues, and debt issues.

The group’s current structure includes private equity investments in the financial services sector and the real sector, real estate investment and development in the commercial and residential segments and a treasury division.

A Proven Investments Limited billboard in Kingston, Jamaica. (File photo)

The Group currently holds a diverse portfolio of investments (including its ownership of its subsidiaries and shares in its associated companies) which it manages.

For the six-month period ended September 30, 2020, PROVEN reported net profit of US$4.80 million, down 17.49 per cent compared to the normalised profit of US$5.81 million recorded for the period ended September 30, 2019.

Management stated in the comments attached to the period’s results that the year-on-year decline in net profit mainly reflect decreases in net interest income and fees and commission income, emanating from a reduced equity holding in Access Financial Services Limited and lower business activity.