JMMB Group Preference Share Offer Raises Over J$9B Tripling Initial Target Of J$3B.
The week-long JMMB Group Limited (JMMBGL) Preference Share Offer, which closed on Wednesday, March 7, 2018 raised J$9.28 B in total; almost tripling, the company’s initial target of approximately J$3.2 B.
JMMBGL offered four (4) simultaneous tranches of cumulative redeemable preference shares, with a US$ and J$ option, which matures in 2025 – although the company reserves the right for an optional redemption of all classes of preference shares, in full or in part.
In speaking to the positive response to the JMMBGL Preference Share Offer, Patrick Ellis, JMMB Group chief financial officer, outlined, “We are humbled by the continued confidence investors have demonstrated in our plans for the future and the overall strong confidence in the JMMB brand; as we celebrate our 25th year of providing financial solutions that are innovative and in our clients’ best interest. We believe that our core strategy of partnering with clients to achieve their goals and our regional presence generates strong confidence in the long-term performance of the Group; and resonates with investors and clients. This confidence has allowed us to achieve record breaking success in our 2018 Preference Share Offer.”
Ellis added that the uptake of the respective tranches, J$ and US$, was in keeping with investors’ specific financial needs and life circumstances. Investors showed a preference for a fixed rate of return over the tenure of the offer, and as such the US$ offer had a greater demand than the J$ tranches, which offered a variable rate after 2 years.
JMMB Group intends to make an application to the Jamaica Stock Exchange (JSE) to list these simultaneous preference share offerings, to facilitate the trading of each of the preference stock units on the JSE.
The offer forms a part of the Group’s capital management strategy and will be used to support the Group’s continued expansion, in the territories in which it operates.
Details of the Offer
The JMMB Group Jamaican-dollar Cumulative Redeemable Preference Share was offered at a rate of 7.25%, variable rate for JMMB Group clients and 7.00%, variable rate, for non-clients. The US dollar-denominated Cumulative Preference Shares will yield a fixed rate, of 5.75% and 5.50%, for clients and non-clients, respectively.
The first dividend payment for the two classes of the JMD variable rate preference shares will start on April 6, 2018, and thereafter, dividends will be made payable on the 6th day of each month, or the next business day, at the respective rates offered to clients and non-clients. In the case of the USD preference shares, dividends will be paid quarterly, at the agreed rate, beginning June 2018 – until maturity.
All tranches of the preference share offer were sold at a fixed price of $2.00 per share, in the respective currencies.