JMMB Group Preference Share Oversubscribed 

The JMMB Group Limited (JMMBGL) preference share offer, which closed on March 9, was oversubscribed by 166%, with subscriptions totaling approximately, J$9.97 billion.

The company outlined that, as a result of the overwhelming uptake from investors, it will exercise the option to upsize the offer up to the full amount of the subscriptions received to ensure that all investors are allocated 100% of the amount of preference shares that they subscribed for. 

The regional financial conglomerate, sought to raise a minimum of J$6 billion dollars via a three-week long public offer of 2 billion cumulative redeemable preference shares at a price of J$3.00 per share.  The preference shares mature in 2028. 

Keisha Forbes Ellis, chief country officer, JMMB Group – Jamaica, thanked the investing community, especially JMMB’s clients, for their continued belief in the vision of the company and its ability to continue to deliver solid results. Adding, “The success of this preference share offer is truly a win-win partnership that demonstrates the commitment of our team and the value we offer to our clients – new and existing, as we seek to capitalize on opportunities for growth in line with our strategic plans.”

The group's chief investment officer, Damion Brown, outlined that the oversubscription demonstrates, "the desire of investors to hold a diversified portfolio that offers stable and consistent returns, with attractive interest rates, especially, from an entity with an investment grade rating on the local scale, in an environment with low-interest rates.” 

The company has applied to list the preference shares on the Jamaica Stock Exchange, as outlined in its prospectus, thereby allowing investors to trade these shares. 

Additionally, investors will benefit from the stable and solid returns from the shares, as monthly dividend payments of 7.35% and 7.15% are paid to clients and non-clients respectively, over the tenure. These dividend payments can also be reinvested by investors to further bolster returns and their portfolio. Payments are set to start a month following the issuance of the shares. 

The proceeds of the offer will assist the Group, as part of its strategic thrust, to further pursue both organic and inorganic growth opportunities locally and regionally including plans to expand its banking business line, as well as tap new markets in the near future. 

Keith Duncan, JMMB Group CEO, shared, “The JMMB Group is excited about the positive response from investors, as this will allow us to continue to add value to our shareholders and clients, as we pursue the roll-out of our growth strategy that is centred on diversifying our business model and deepening our presence in the existing markets in which we operate. Similar to other capital-raising projects, we look forward to using these funds to build on the milestones that we have achieved so far, as we continue to deliver solid results and introduce innovative solutions that will allow individuals and businesses to achieve their goals.”