Initial Public Offerings (IPO) Listings on the Jamaica Stock Exchange (JSE): Recent and What’s to be Expected

 

 

2018 ended with eighteen (18) new companies being listed on the JSE, with 2019 opening with the ICreate IPO. Let’s take a look at what to expect for the remainder of 2019.

 

2019 listings to this point:

 

  1. Fontana Limited

Broker: Scotia Investments Limited

Listed on the Junior Market: January 8, 2019

Fontana Pharmacy has been a Jamaican brand since November 30, 1968. Their IPO       was opened on December 13, 2018 and was slated to run to December 20, 2018.     Notably, the IPO was closed within minutes of being opened, having surpassed their          goal of J$468,077,925 million.

 

  1. MPC Caribbean Clean Energy Limited

Broker: JN Fund Managers Ltd. (Jamaica) / First Citizens Brokerage and Advisory Services Ltd. (T&T)

Listed on the Main Market: January 14, 2019

MPC is a Caribbean based company established in 2017 with the overarching goal         of acting as an investment fund through which varying investors form Jamaica and Trinidad and Tobago can fund a variety of renewable energy projects. Registered in     Barbados, this is achieved as a result of the investment company MPC Caribbean Clean Energy Fund LLC. The company IPO was opened on December 3, 2018 to            raise US$11M so as to be publicly listed on the Jamaica Stock Exchange as well as          the Trinidad and Tobago Stock Exchange (TTSE). The offering was slated to close on December 14, 2018, but was extended until December 24, 2018. The company’s         aim was to raise US$50M between the two exchanges, however they fell short at just      over US11M. Nonetheless, they met the criteria to be listed and are well on         their way to their initial goal. The company wishes to proceed with the construction         of a 47MW solar PV park which is currently underway in Jamaica as well as a       21MWTilawind wind park in Costa Rica. The company has plans for at least 14      additional projects throughout the region with an estimated total of USD$499M.

 

  1. ICreate

Broker:

Listed on the Junior Market: January 8, 2019

See our previous article.

 

Possible IPO Listings to look out for:

 

  1. Wigton Windfarm Limited (WWF)

Brokers: Mayberry Investments Limited, Credit Union Fund Management Company                              Ltd., M/VL Stock Brokers Ltd., Proven Wealth Ltd. and Scotia                                                    Investments Ltd.

When is the IPO expected: March 2019

As a subsidiary of Petroleum Corporation of Jamaica (PCJ), the company became          incorporated in April 2000, with operations beginning in 2004 with Wigton I. The            largest wind energy facility in the English-speaking Caribbean was founded with the   main purpose of researching and identifying       potential sites for renewable energy   solutions, namely wind and solar. The company has had two phases to date.        Wigton I (Wigton Phase One) was installed in 2004 for         US$26M and Wigton II (Wigton Phase Two) in 2010 for US$47.5M. Wigton III       (Wigton            Phase Three) is set to have a capacity of 24 MW. Their corporate office is located at 36 Trafalgar    Road, Kingston 10, with the Windfarm complex being situated in Rose Hill,      Manchester. National oil consumption has been reduced by figures exceeding      400,000 barrels, thus saving Jamaica close to J$3B. Wigton is one of a few         companies being short-listed for privatisation. That is, the government is selling part of their share. Plans for the IPO on the Jamaica Stock Exchange should be finalised      towards the end of the current fiscal year, March 2019.

 

  1. Silver Sands Estates

Broker: unknown

When is the IPO expected: March 2019

Silver Sands is centered around vacation rentals by the sea. Their offerings include        villas, cottages, and apartment condominiums. Silver Sands Estates is a community        spanning the approximate length from Montego Bay to Ocho Rios, being based in Trelawny. The government owned lands of the expanse are said to be listed on the           Jamaica Stock Exchange, with plans to be finalised by the end of March 2019, the           end of the current fiscal year.

 

  1. Coffee Industry Board

Broker: unknown

When is the IPO expected: March 2019

The Coffee Industry Board (CIB) has positioned themselves to promote, oversee and     maintain a steady development of Jamaica’s coffee industry, and the very best             product. They administer certifications, licensing, and advisory services related to   crop condition, harvesting and environmental control. The government is slated to privatise their share of the board, plans of which are to be finalised by the end of March 2019. 

 

 

  1. Bath Fountain Hotel and Spa (St. Thomas)

Broker: unknown

When is the IPO expected: March 2019

The Bath Fountain Hotel is a 16-room provision which offers you a perfect place to       stay close to the Bath Mineral Springs in St. Thomas. They offer an on-site           restaurant, room service and simple pleasures you will need. The springs themselves         are a Jamaica National Heritage Site, being discovered in the 1690s by a runaway      slave. It is believed that the spring provides relief for various ailments and diseases,         as was the testimony from the slave many years ago. The water flows hot and cold           from two different rocks, but the spring itself is found to be hot. The alleged healing            properties can be attributed to the high concentration of sulfur and lime in the water.

The government is slated to privatise their share of the board, plans of which are to        be finalised by the end of March 2019. 

 

  1. Milk River Hotel and Spa (Clarendon)

Broker: unknown

When is the IPO expected: Feasibility still being assessed

The radioactivity of the water at Milk River is unprecedented. It is said to be 9 times      as active as that at Bath, England; 50 times more than Vichy, France; and 54 times       more active than Baden, Switzerland, some of the world’s best spas. The spa is     located close to May Pen, Clarendon and is a National Heritage Site.

 

  1. National Water Commission (NWC)

Broker: unknown

When is the IPO expected: March 2019

The NWC is the primary institution in Jamaica responsible for all major water and         sewerage operations in the country. The government is said to be exploring new

business models for equity financing.

 

  1. UWI

Broker: unknown

When is the IPO expected: unknown

The premier tertiary institution in the island has made arbitrary claims of an IPO in        the future. They are working towards evolving themselves as an entrepreneurially           driven institution.

 

  1. UCC Online

Broker: unknown

When is the IPO expected: unknown

University College of the Caribbean (UCC) is expected to list shares of UCC Online,     the online segment of the institution on the junior market.

 

  1. Jamaica Plumbing Supplies

Broker: unknown

When is the IPO expected: unknown

 

 

 

 

 

 

 

 

Read More