The prospectus for the long-anticipated ‘TransJamaica IPO’ was released today on the Jamaica Stock Exchange’s website. The prospectus shows that you can now own a piece of Jamaica for less than $1500 Jamaican Dollars. This is possible because the price for the minimum subscription for the shares in Transjamaican Highway Limited is less than $1500 JMD. 

Each share is $1.41JMD or $0.01USD and you aren’t allowed to buy less than 1000 shares which is $1410 JMD. If you want to buy in USD you’d have to buy at least 100,000 shares

Image from the Prospectus

This offering is by National Road Operating and Constructing Company Limited and it is said to be the biggest in Jamaica’s history as it is seeking to raise J$11,280,000,000 or US$80,000,000 from the sale of 8,000,000,000 Sale Shares. The company has even reserved the right to upsize this offer by an additional 2,000,000,000 Shares if they deem it to be necessary. 

Significance of this IPO

The prospectus proudly stated: “For the first time in Jamaica’s history, the opportunity exists for members of the public to own a share of one of Jamaica’s most important infrastructural development”. 

The prospectus is referring to four toll roads that are under the company Transjamaican Highway Limited. This company is responsible for the “development, operation and maintenance of the toll road in Jamaica known as the “Highway 2000 East-West””

The public has access to this company because the Government of Jamaica, through National Road Operating and Constructing Company Limited, a state-owned entity, purchased 100% of shares of Transjamaican Highway Limited. The company was previously owned by foreign investors and it’s through this sale to the government that the public potentially has access of up to 80% of the company. 

What Your Money Will be Used For 

$11.28 billion dollars is a lot of money and if you want to invest, you’d naturally want to know what the money will be used for. 

The prospectus stated that the money raised from this IPO will be used for the expenses associated with the offer for sale and listing, repayment of the proceeds of the Equity Bridge Notes, which were given to the previous investors in exchange for the company and whatever else the government deems necessary. 

The allocation of the funds is broken down below:

Who Do You Give Your Money To

NCB Capital Markets is the lead broker and there are very detailed instructions within the prospectus that explains how you go about getting them your money. However, it’s important to note that JMMB is the Co-Broker and the other selling agents are as follows: 

  • Barita Investments Limited
  • Victoria VM Wealth Management Limited
  • Proven Investments Limited
  • Scotia Investments Limited
  • Sagicor Investments Limited
  • Stocks and Securities Limited
  • Mayberry Investments Limited
  • MVL Stockbrokers Limited
  • JN Fund Managers Limited

The opening date is February 17, 2020, at 9:00 am, and the closing date is March 9, 2020 at 4:30 pm. You may apply before the opening date and the prospectus noted that the company can close before or after March 9th. If you apply before the opening date, it will be processed on the opening date. 

We are not licensed financial advisors and so this should not be seen as financial advice. As the prospectus stated, “Prospective investors should read this Prospectus in its entirety before making decisions to apply for Shares.”. The prospectus has a lot of information about the company’s financial history as well as future plans you’ll want to pay attention to. You can access the prospectus by clicking this link. Ask your financial advisor if this stock will help you achieve your financial goals. 

 

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