AMG share offer oversubscribed
Published:Friday | July 1, 2011 | 12:00 AM
The AMG public offering of shares was oversubscribed by close to four times the $57.8 million target within half an hour, lead broker and financial advisor Stocks and Securities Limited said Wednesday.
The broker received 300 applications totalling some J$213 million, representing an oversubscription of approximately 3.7 times the fund-raising amount originally sought, said SSL Wednesday.
AMG Packaging and Paper Company offered 21.5 million of its shares available to the market on Wednesday at J$2.88 per share. Some 7.1 million of the amount were sold to connected parties and partners at a discount of J$2.30.
SSL said that final allotment of the shares will be announced on July 4.
AMG in its prospectus said the proceeds from the IPO will be invested in the development of its product range and process improvement, the expansion of plant inclusive of the identification and acquisition of new warehouse capacity for storage of raw and finished materials, as well as payment of the expenses associated with the offer.
The box manufacturing company was incorporated in 2005 and supplies corrugated boxes to businesses such as Jamaican Teas, Seprod and Wisynco Group. The company currently has a staff complement of 63 employees.
It will become the 10th stock to list on the nascent JSE junior market.