The JMMB Group Limited (JMMBGL) preference share offer, which closed on March 9, was oversubscribed by 166 per cent with subscriptions totalling approximately $9.97 billion.
The offer, which opened on February 16, sought to raise a minimum of J$6 billion via a three-week long public offer of two billion cumulative redeemable preference shares at a price of $3.00 per share which is to mature in 2028.
The regional financial conglomerate said that with the overwhelming uptake from investors it will exercise the option to upsize the offer up to the full amount of the subscriptions received to ensure that all investors are allocated 100 per cent of the amount of preference shares they subscribed for.
Keisha Forbes Ellis, chief country officer, JMMB Group, thanked the investing community, especially the entity’s clients, for their continued belief in the vision of the company and its ability to continue in delivering solid results.
“The success of this preference share offer is truly a win-win partnership that demonstrates the commitment of our team and the value we offer to our clients – new and existing, as we seek to capitalise on opportunities for growth in line with our strategic plans,” she said.
The group’s chief investment officer, Damion Brown, added that the oversubscription demonstrates the desire of investors to hold a diversified portfolio that offers stable and consistent returns with attractive interest rates, especially from an entity with an investment grade rating on the local scale, in an environment with low interest rates.”
The company noted that, as previously outlined in its prospectus, an application has been made to the Jamaica Stock Exchange providing investors with an opportunity to trade these shares.
“Additionally, investors will benefit from the stable and solid returns from the shares, as monthly dividend payments of 7.35 per cent and 7.15 per cent are paid to clients and non-clients, respectively, over the tenure. These dividend payments can also be reinvested by investors to further bolster returns and their portfolio. Payments are set to start a month following the issuance of the shares,” a company release on Monday stated.
The proceeds from the offer, the group had said, will assist the company to further pursue both organic and inorganic growth opportunities locally and regionally including plans to expand its banking business line, as well as tap new markets in the near future.
“The JMMB Group is excited about the positive response from investors, as this will allow us to continue to add value to our shareholders and clients, as we pursue the roll-out of our growth strategy that is centred on diversifying our business model and deepening our presence in the existing markets in which we operate. We look forward to using these funds to build on the milestones that we have achieved so far, as we continue to deliver solid results and introduce innovative solutions that will allow individuals and businesses to achieve their goals,” commented Keith Duncan, JMMB Group CEO.