Proven Investments Limited (PIL), an investment company listed on both the J-Dollar and USD markets of the Jamaica Stock Exchange (JSE), is making to the public an offer of new ordinary shares priced at $38.64 or US$0.28 each.
With a total of 267,857,143 on offer, the company is targeting J$10.35 billion. The offer will open on March 11 and close on March 31. The Invitation is underwritten by Sagicor Investments Jamaica Limited, whose underwriting commitment is capped at US$50 million.
The company, in a prospectus issued on March 2, indicated that it aims to deploy capital for the real estate development projects and additional investments in the regional acquisition of financial services sector. PIL’s strategic plan incorporates increasing its capital base as it targets expansion.
The company has invited subscriptions from the public in Jamaica of 267,857,143 new ordinary shares at the subscription price of US$0.28 or J$38.64.
The Invitation will be initially in respect of 178,571,429 but directors may elect to upsize the number of by an additional 89,285,714 shares maximum if the first tranche is oversubscribed.
Company chairman Hugh Hart, said in the prospectus, “the timing is right for us to expand our shareholder base and give as wide a group of equity investors as is possible the opportunity to participate in the future of the Company, as we seek to raise additional capital to deploy in execution of our business strategies.”
PIL started in 2010 when the company raised US$20 million by way of a private placement of ordinary shares, and later that year, an additional US$9.7 million by a rights issue of additional ordinary shares.
In July 2011, ordinary shares were listed by introduction as the first listed ordinary shares on the USD Market of the JSE.
The company has subsequently raised additional funding through rights issues of ordinary shares, preference share issues, and debt issues.
“The capital we have raised to date has allowed us to continue on a journey that has seen us return both healthy dividends and capital appreciation to our shareholders, through a focused, risk-based approach to investing and managing our capital.”– PIL Chairman Hugh Hart
PIL now holds a substantial portfolio of investments in Jamaica, the Cayman Islands, St Lucia and beyond, including subsidiaries and associated companies, and generated net profit attributable to shareholders of US$6.97 million as at our last financial year ending March 31, 2019.
The Chairman said the company intended to use the net proceeds of the Invitation “to strengthen our capital base and enable us to continue to pursue and execute those investment opportunities that we determine offer the best prospects of meeting our investment targets and satisfy all of our investment criteria.”
He noted that while the company is likely to seek investments in its core areas of expertise, such as financial services, the company will also consider investments in the real sector.