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QWI Investments targets overseas stocks

QWI investments, a company newly listed on the main market of the Jamaica Stock Exchange (JSE) and a subsidiary of Jamaican Teas Limited, ended its third quarter in September with net profit of J$248.6 million.

QWI Investments, a subsidiary of Jamaica Teas Limited, had its IPO in August 2019.

After operating expenses, the company closed September with a surplus of J$343 million or 73 cents per share, with the September quarter recording a profit before tax of J$229 million or 49 cents per share. Net earnings were made on investment gains of J$394.49 million.

The company has total assets valued at $2.6 billion as at September 30.

QWI made a successful Initial Public Offering (IPO) in August 2019 which was oversubscribed and raised, after upsizing, approximately $1.2 billion from 4800 investors.

“QWI’s objective is to provide attractive returns to shareholders, and preserve capital by maintaining a diversified portfolio of investments locally and overseas…”

– QWI Investments statement

 As a result of the issue, shareholders’ equity increased to $1.96 billion at the end of the September quarter.

QWI Investments was incorporated in December 2018 and in March and April 2019, the company acquired all the quoted investments held by Jamaican Teas and KIW International valued at $465 million at the time of purchase.

By the time of the IPO, the net value of the portfolio had moved to $800 million and the company closed the fiscal year end with $2.3 billion including the net proceeds from the IPO. 

Directors, reporting on the results, said the company has reduced its borrowings and has been acquiring new investments both locally and overseas.

QWI Investments director, John Jackson. (Photo: QWI Investments)

The Directors’ Report read: “with the successful IPO, the company’s investment portfolio is more balanced, in line with our expectations, and as we continue to acquire assets in overseas markets will become more diversified both geographically and by sector.”

The company invests primarily in securities of companies listed on the JSE and on other recognised overseas stock exchanges with a medium to long term investment horizon, directors stated.

The Jamaica Stock Exchange

The statement signed by directors John Jackson and John Mahfood said, “QWI’s objective is to provide attractive returns to shareholders, and preserve capital by maintaining a diversified portfolio of investments locally and overseas.”

It was noted that the company’s performance for the period was influenced mainly by another year of strong performance by the Jamaica Stock Exchange which as at Sept 30, 2019 is where the company held all its invested capital.

Between January and September 2019, the main market index gained more than 40 per cent, while the Junior Market returned 8.8 per cent.