CPJ magnetises market
Published:Sunday | July 10, 2011 | 12:00 AM
The Caribbean Producers Jamaica (CPJ) initial public offering was shut down within a minute of subscription after more than J$2 billion worth of bids.
The offers were five times the J$426 million target.
Lead broker, Mayberry Investments Limited, said it closed the J$2.88 per share offer at 9:01 am on Friday.
The allotment of shares will be advised on Wednesday, July 13.
Caribbean Producers - an integrated food distributor whose annual sales top US$60 million - is 80 per cent majority owned by companies controlled by the Harts of Montego Bay. The IPO will put 13 per cent ownership of the company into the hands of the public, while the rest is earmarked for directors, staff, and key customers.
The company at December 2010 was valued at US$16.2 million (J$1.4 billion) on its balance sheet.
The offer was underwritten by Good Hope Holdings Limited, which gave an irrevocable commitment to take up any shares that had not been subscribed. Good Hope is controlled by Tony Hart, the father of CPJ co-founder and chairman Mark Hart.
The final allotment and listing of some 220 million CPJ shares on the JSE Junior Exchange is expected in three to four weeks.
The rush by investors to acquire junior market IPOs has been consistent since the debut of the first company, Access Financial Services, in late 2009.
CPJ will become the 11th junior market stock to list, and the ninth to be brokered by Mayberry. Pan Caribbean Financial Services and Stocks and Securities Limited arranged the other two.