Lead broker and arranger for Tropical Battery Company Limited’s initial public offering (IPO), NCB Capital Markets Limited, has informed the public that the IPO was closed around 4:30 pm yesterday, September 22, 2020, after it opened hours earlier, due to oversubscription.
In a notice on the Jamaica Stock Exchange website, NCB Capital Markets explained that, as a result of the oversubscription, Tropical Battery “has decided to exercise its rights to close the offer early” and will indicate the basis of allocation of shares in a subsequent communication.
Tropical Battery, in its prospectus posted on the Jamaica Stock Exchange website, invited the take-up of 325 million ordinary shares at J$1.00 through the IPO, which opened yesterday. Of the amount, the company made 137,500,000 share available to the public and reserved 187,500,000 for company applicants, industry partners and strategic investors.
The prospectus also indicated that the company would use the proceeds of the IPO to expand its operations, including the expansion and renovation of retail stores; expansion of parking; completion of buildout of and relocating to the company’s new warehouse, head office and retail store at Ferry in St Andrew, Jamaica. The remaining proceeds will support Tropical Battery’s working capital.
In the note on the JSE website yesterday, the lead broker and arraged stated: “NCB Capital Markets Limited and Tropical Battery Company Limited would like to thank the investors for their support of the Offer.”