New shareholder SVL joins Dolla line-up
Published:Friday | July 28, 2023 | 12:11 AM
Supreme Ventures Limited, SVL, has acquired 15 per cent of Dolla Financial Services, an investment that has already climbed in value to more than $1 billion.
SVL is a lottery and gaming company but it’s also invested in the microfinancing sector through wholly owned subsidiary McKayla Financial Services. The Dolla acquisition deepens its presence in the microlending market amid its push towards diversification.
Subsequent to the announcement of the deal, Dolla said Wednesday that Supreme Ventures Gaming Limited CEO Xesus Johnston, as well as Mayberry Investments Limited’s Chief Operating Officer Andrea Whittaker would be joining its board. The appointments are pending approval by the Bank of Jamaica. Dolla itself received its licence as a microlender last November amid ongoing reform of the sector, which now falls under the central bank’s oversight.
Dolla Financial Services was taken public and listed on the Jamaica Stock Exchange last June by new parent FirstRock Group.
In total, FirstRock Private Equity Limited disposed of 600 million or 24 per cent of its shares in Dolla on Monday, July 24, which would have cut its stake from 60 per cent to 36 per cent. Still, it remains the single largest shareholder, with founder of the business Kadeen Mairs as the second largest owner through his company Dequity Capital, and Supreme Ventures now rounding out the top three.
The value of Monday’s transactions were not disclosed. But the disposal of the shares, 375 million of which were sopped up by SVL, would have been valued at more that $1.2 billion based on the stock’s trading range on that day. The rest of the shares were said to be taken by Mayberry Jamaican Equities Limited, which was already a top shareholder in the microcredit firm.
Since its listing a year ago, Dolla Financial has grown exponentially, evidenced by its loan book which was valued at $1 billion in June 2022 but was estimated at more than $2.5 billion precisely one year later. Its earnings have also been climbing alongside the business. At half-year ending June 2023, the microlender reported a near doubling of its profit from $119 million to $227 million.
Dolla already operates in Guyana and is looking to test other Caribbean markets utilising debt raised on the private market to finance its venture into new countries. Since its listing, it also added a new subsidiary called Ultra Financier that’s targeted at high net worth clients.