JMMB Group Ltd. Preference Shares Listed as 100th Security on JSE
The JMMB Group Limited (JMMBGL) yesterday (April 19) made history as the 100th security to be listed on the Jamaica Stock Exchange (JSE), with the listing of its four simultaneous preference shares – USD Cumulative Redeemable 5.50% and 5.75% Fixed Rate Preference Shares and JMD Cumulative Redeemable 7.00% and 7.25%, Variable Rate Preference Shares. The announcement was made by the Jamaica Stock Exchange’s managing director, Marlene Street-Forrest. The four tranches of preference shares raised approximately J$9.28B, in a week-long offer.
Keith Duncan, CEO of JMMB Group, in speaking on the occasion, highlighted that the success achieved by JMMB Group in almost tripling the company’s initial target of J$3.2B, was partially hinged on Jamaica’s stable macro-economic environment and growing investor confidence. He notes, “The size and scale of this kind (of) offer and the many successful offers we have seen in the last year also, shows that Jamaica is open for business. Even more, it shows that we have a stable macro- economic environment which is underlined by the fact that our debt to GDP ratio has been declining. The success of offers such as this, demonstrate that the capital markets are open for the private sector to access capital needed to fuel the growth that Jamaica so desperately needs.”
In also highlighting the relationship between the stock market and the local economy, while delivering her opening remarks at the listing ceremony, Marlene Street-Forrest underscored the value of the stock exchange to the growth of the local economy, stating that the Exchange is a key component of the capital market and, by extension, the economy. “We are seeing where investors, companies and our government are beginning to understand the importance of the stock market in creating wealth sector-by-sector, individual-by-individual and company-by-company,” she added. Street-Forrest highlighted the stellar track record of the junior market and its contribution to the economy, through the addition of 3000 new jobs, J$4.6B, in total, in general consumption tax (GCT) and raising of over J$8B in capital, since 2009.
The JSE’s managing director also commended JMMBGL on the occasion, for taking advantage of the various avenues provided by the Exchange in efficiently raising capital, and encouraged other companies to recognize what can be achieved by using the Exchange as a medium for business expansion and wealth creation.
JMMBGL and JMMB Limited have raised over J$23 billion from issuing shares to the market, since 2007. Over that period, the company has continued the expansion of its business lines in the territories in which it operates, while building out its integrated financial services model across the Group. This build out is reflected in the launching of commercial banking operations in Jamaica; upgrading its JMMB Money Transfer platform; rebranding Intercommercial Bank Limited (IBL Bank) in Trinidad and Tobago; and expanding its suite of offerings in the Dominican Republic, to include banking operations and the introduction of pension fund management and mutual funds. The funds raised have also been used as part of the Group’s capital management strategy.
The JMMBGL preference share listings, which are the first to be listed on both the JMD and USD main market since the start of the year, will now allow for the trading of these preference shares.