Caribbean Business Reports

Proven Investments Limited has once again launched its additional public offer (APO) of up to 134,124,037 ordinary shares to the public and reserved clients.

If the offer is fully taken up, the company expects to raise JM$4.3 billion or US$30,282,871.  

The invitation will open January 8, 2021 and close January 29, 2021.

“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

The company first issued its prospectus on March 2, 2020, but later withdrew same due to conditions caused by the spread of COVID-19.

Real estate and acquisitions

According to PIL Chairman Hugh Hart, the proceeds from the APO will finance capital injection into real estate development projects, as well as support the investment firm’s main business of holding tradable securities for investment purposes and pursuing private equity opportunities.

In particular, the funds will bolster PIL’s efforts to add new investments through regional acquisitions in the financial services sector.

“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,” Hart explained.

Allocation of shares

Up to 67,676,767 new ordinary shares in the invitation are in reserve for applicants comprising the company’s key investor pool and existing shareholders.

The subscription price for the APO ranges between US$0.22 per new ordinary share (if paying in USD) or JM$32.10 (if paying in J$) and US$0.2300 (J$33.50).

Existing shareholders will pay US$0.2250/J$32.80 per new ordinary share.

A ‘Proven’ structure

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

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

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

Half-year results

For the six-month period ended September 30, 2020, PIL 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.

In comments attached to results for the period, the company attributed the  year-on-year decline in net profit mainly to dips in net interest income and fees and commission income, due to reduced equity holdings in Access Financial Services Limited and lower business activity.