A brief overview of First Rock Capital Holding’s Upcoming IPO.

With the Jamaican Stock Exchange being crowned as the World’s Best Performing Stock Market at the beginning of the year by Bloomberg, there have been several companies going public throughout the year. As we have seen throughout recent years, Jamaica’s economic standing has improved and it is now ripe and ready for everyone to get a piece of the cake.

That is why, we here at Jamaica Live want you, our audience, to make informed decisions about companies as they go public and make their stock available for you to buy. We are not licensed financial advisors and so we are not offering financial advice. This article is for informational purposes only, to help you take the next step forward.

This week we are looking at First Rock Capital Holdings Limited, the newest company to issue an Initial Public Offering (IPO). You can and should read the prospectus for yourself.

As a first step, here is a brief summary of the company and the upcoming IPO.

According to the prospectus, First Rock Capital Holdings is an investment company which focuses on real estate and private equity investments. The company has several properties in Jamaica, the Cayman Islands, throughout the wider Caribbean and the US.

They are offering up to One Hundred Six Million, Eighty Three Thousand, Three Hundred and Thirty Two (106,083,332) Shares to the public with the option of adding an additional Fifty Three Million, Forty One Thousand, Six Hundred and Sixty Six (53,041,666) Shares in case of over subscription. Their aim is to raise around $12.3 million US dollars but you could see the amount growing to $18.5million US dollars if the IPO is oversubscribed and more shares are offered.  This means they’re aiming to raise over a billion Jamaican dollars.

The company plans to use money collected from this IPO to do a variety of ventures to make a profit on the company’s and shareholders’ investment. For example, they intended to fund pipeline opportunities such as Bamboo Avenue and Shoppes at Rosehall and Suntrust, as outlined by section 8.5 in the prospectus.

Proceeds from the IPO will also be used to “pay fees and expenses associated with the Invitation and continue the mandate and objectives of the Company in identifying opportunities in both the local and international real estate markets as per the process set out in Section 8.8 for future purchases of commercial and residential properties”

If you are considering investing, you should note that the subscription price is US$0.12 (about JMD$16) per ordinary share and reserved share applicants will get a lower share price of US$0.108 (about JMD$14). The minimum shares you can acquire from this IPO is One Thousand (1000) shares so if you’re interested that’s $120USD (JMD$16,000) plus the JMD$163.10 which is the application fee from the Jamaica Central Securities Depository.

The opening date for this IPO is January 13th 2020 at 9 am and its closing date is slated to be January 31st, 2020. The prospectus says that early applications with full payment may be submitted to Sagicor investments before the opening date. The prospectus also stated the shares will be allotted on a “first come first serve basis”. So if this is something you may be interested in, call your broker today.

If your New Year’s resolution includes investing more or diversifying your portfolio, and you are interested in buying into this company, talk to your financial advisor. The application form can be found in the prospectus. The arranger and lead stockbroker is Sagicor Investments Jamaica Limited. The co-arranger is Sygnus Capital Limited.

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