The TransJamaican initial public offer (IPO) will close on Monday, March 2, a week earlier than initially stated.
The offer for sale of common shares in TransJamaican Highway Limited was upsized by two billion shares so that the total raised would be J$14.1 billion.
The previous target was $11.3 billion.
Speaking with JIS News, Managing Director of the National Road Operating and Constructing Company (NROCC), Ivan Anderson, said “We had a tremendous uptake so we took the decision last Friday to upsize to 10 billion shares and part of the upsizing is early closure.”
The NROCC on January 31 issued a prospectus inviting the public to buy up to eight billion ordinary shares in the TransJamaican Highway Limited, the highway operating company.
Shares are priced at J$1.41 or US$0.01 each. It also has the option of upsizing the offer by another two billion shares.
If the offer is successful, the company will apply for listing on the US$ Main Market of the Jamaica Stock Exchange (JSE) and the cross-listing on the J$ Main Market of the JSE.
The TJH road network is the main link between the capital city of Jamaica, Kingston, and other populated urban and industrial centers including the cities of Portmore and May Pen.
Ratings agency Fitch which has assigned proposed notes of the company a high rating of BB- describes the asset as “currently the only high-speed roadway serving the western part of Kingston’s metropolitan area, with an estimated population of 1.4 million people along the corridor.
Fitch said motorisation rates in Jamaica are still low and expected to increase by 3.5 per cent per annum until 2028. It noted, additionally, that the toll road is the largest infrastructure project in Jamaica.
TJH stretches for 49.9KM, connecting Kingston with May Pen, and is divided in two corridors: T1 and T2. The T1 corridor stretches between Kingston and May Pen (with a connection through to Spanish Town), it has three toll plazas located at Spanish Town, Vineyards and May Pen.