QWI Investments Limited, an investment firm whose initial public offering (IPO) and listing took place on the Jamaica Stock Exchange (JSE) in 2019, has rolled out its first report.
The firm indicated that, more than any other segment, it expects positive result from the equities market in the United States in the new financial year.
As at January 2020, management indicated, approximately fifteen per cent of listed equities comprise securities listed on the USA exchanges.
This has allowed the Company to diversify its investments in several leading companies involved in technology, defence, retail, payments services and healthcare.
“Such investments are not available in Jamaica and provides QWI the opportunity to own shares in companies with higher growth rates as well as to diversify its portfolio,” management outlined.
The company said it is on the lookout for further opportunities in the market. “We will carefully monitor the available opportunities for those additional financial investments we expect to benefit our shareholders.”
QWI was incorporated as an Investment and Management Company in 2018 as member of the Jamaican Teas Group.
The Company acquired all the quoted investments held by Jamaican Teas Limited (JTL) and KIW International Limited (KIW) in February and March 2019 respectively.
These shares were valued at J$436 million at the end of March, and had grown by 2.8 per cent between their purchase by QWI and 31 March 2019. By the time of IPO, the value of the portfolio had moved to J$1.4 billion.
QWI closed the fiscal year in September 2019 with almost J$2.6 billion in assets including net proceeds from the IPO of over J$1.1 billion.
The company also benefitted from the performance of the JSE during the year when the main market index gained 33 per cent between March and September 2019 the fiscal year end. The Junior Market index increased 14 per cent in the same period.
QWI’s Net Asset Value (NAV) per share increased from J$1.01 at the end of March to J$1.37 at the end of September, a 36 per cent gain that exceeded the rise in the JSE Main index, after accounting for administrative expenses and the costs of the IPO.
The issue raised almost J$1.2 billion and lifted shareholders’ equity to J$1.96 billion at the end of September.
Management noted that after operating expenses, the company closed September 2019 with a surplus of $249 million or 53 cents per share.
They said the company’s objective is to seek out undervalued stocks that it views as having strong upside potential.