550 applicants have bought into the idea of investing with one of the richest men in the world resulting in 23.5% oversupscription of Michael Lee Chin’s Portland JSX IPO.

The IPO which ran from June 8 to June 22 represents the largest IPO of Ordinary Shares ever on the Jamaica Stock Exchange with funds raised exceeding the initial target of J$1.23 billion by $290 million closing at approximately J$1.52 billion.

The company had gone to market with a total of 111,818,182 ordinary shares priced at J$11.00 each, was oversubscribed by 23.5%. The initial agreement for the IPO would have allowed new investors just under a 40% stake in the company, however, based on the overwhelming response; Portland JSX decided to upsize the offer.
Proceeds from the IPO will be invested in Portland Caribbean Fund II. This is a private equity fund, which holds a portfolio of equity and/or debt securities of companies located in Latin America and the Caribbean.

Global private equity investors in PCF II include International Finance Corporation (IFC), European Investment Bank (EIB), German Development Bank (DEG), Export Development Canada (EDC), Caribbean Development Bank (CDB) and Inter-American Investment Corporation (IIC).

Managing Partner and Member of the Investment Committee, Robert Almeida says so far, PCF II has made investments in three companies with several deals in the pipeline across multiple sectors. The Fund has investments in Panama Wind, a wind energy project in Panama; CFFI Ventures (Barbados) Inc (“CVBI”), an opportunity which resulted from the Cable & Wireless and Columbus Communications merger; and Clarien Group Limited (“CGL”) – the parent company of Clarien Bank Ltd (“CBL”) – a leading bank in Bermuda.

He says there are also plans to invest in several other entities, in various sectors across the Caribbean as the company continues to diversify its portfolio through profitable investments.

“Unlike peers in other markets which have optimized their portfolio risk and returns by diversifying their portfolios globally and making substantial use of private equity investments, most Jamaican institutions have been prevented from this investment best practice by regulatory or other constraints,” said the prospectus, adding that the listing of PJX forms a way to unlock that potential.

Portland JSX is expected to list on the main market of the Jamaica Stock Exchange within the next four weeks.