Jamaican Teas oversubscribed in two minutes
Published:Friday | June 18, 2010 | 12:00 AM
The initial public offering for Jamaican Teas Limited was oversub-scribed two minutes after subscriptions opened in Kingston to a hungry equities market.
Mayberry Investments Limited (MIL) lead broker and financial adviser to Jamaican Teas, advised in a notice that the J$3.37 per share offer was closed at 9:02 am Thursday morning.
The offer was to have stayed open for one week until June 24.
The subscriptions amounted to more than J$180 million, just about double the J$98 million of equity capital the company is seeking to raise.
MIL, in its advisory, further stated that due to the overwhelming response to the share offer, the allocation will be done on a proportional basis.
"All applicants should note that they may receive a smaller number of shares than they have applied for," it said.
Jamaican Teas will now join two other companies, Access Financial Services Limited and Blue Power Group, when it lists on the JSE Junior Stock Exchange which is now capitalised at J$1.5 billion.
Blue Power had a similar reception when its offer debut. The offer closed in one minute.
The new capital raised by the tea company, which was rated as a buy and a fair investment by several brokerages prior to the launch of the IPO, is earmarked for the company's expansion plans which include additional warehouse capacity and to fund increased overseas marketing activities.
The John Mahfood-led operation expects to list on the junior market in about three weeks.