JMMB prefs 33% oversubscribed
Published:Friday | January 14, 2011 | 12:00 AM
Jamaica Money Market Brokers Limited said it received J$2.76 billion of applications for its new preference shares, or 33 per cent above the target of J$2.075 billion.
The offer received strong support from its opening on January 4, hitting the half-way mark on day one.
By the end of the second day, JMMB tallied subscriptions totalling about two-thirds of the target.
The offer, which was structured in two tranches of 400 million 8.75 per cent preference shares at J$3 per unit for JMMB clients and 250 million 8.5 per cent prefs at J$3.50 per share to the public, closed on January 7.
The funds are earmarked to finance capital programmes.
In a company statement, JMMB Chief Executive Officer Keith Duncan, comparing the current uptake to the company's first pref issue in 2007, said that offer raised J$2.5 billion and that it was the company's growth in the past two years that drove "even greater success" for the current float.
"Investors were clear that they were motivated by the income they could plan on for the next five years," Duncan said.