Tuesday 20 November, 2018

Elite Diagnostic listing takes junior market value to $121 billion

Warren Chung (left), CEO at Elite Diagnostic Limited proudly points to his company’s name listed on the Junior Market of the Jamaica Stock Exchange. Also photographed are, Herbert Hall, Assistant Vice President, Investment Banking; NCB Capital Markets, Marlene Street Forrest, Managing Director, JSE; Denton Dewar, Manager,  Origination and Structuring at NCBCM; Mischa McLeod-Hines, Manager, Capital Markets, Sagicor Investments Limited and Neil Fong COO and Medical Director, Elite Diagnostic Limited.

Warren Chung (left), CEO at Elite Diagnostic Limited proudly points to his company’s name listed on the Junior Market of the Jamaica Stock Exchange. Also photographed are, Herbert Hall, Assistant Vice President, Investment Banking; NCB Capital Markets, Marlene Street Forrest, Managing Director, JSE; Denton Dewar, Manager, Origination and Structuring at NCBCM; Mischa McLeod-Hines, Manager, Capital Markets, Sagicor Investments Limited and Neil Fong COO and Medical Director, Elite Diagnostic Limited.

Elite Diagnostic Limited on Tuesday, became the first company to list on the Jamaica Stock Exchange (JSE) for 2018, bringing the market value of the Junior Market to more than $121 billion.

The five-year-old diagnostic imaging centre exceeded expectations with a 768% oversubscription of its Initial Public Offering (IPO), which raised $144 million when it opened and closed on February 5. While 70.68 million ordinary shares were offered to the public, Elite on Tuesday listed some 353,400,000 ordinary shares on the Junior Market of the stock exchange. Its IPO raised $144 million.

Elite brings to the market 3,000 new shareholders, which far surpasses the minimum requirement of 25 to list on the Junior Market. According to Marlene Street Forrest, Managing Director, JSE, this puts Elite in an elite group of companies whose shares were also oversubscribed. She also commended the team of arrangers and brokers from NCB Capital Markets (NCBCM) and Sagicor Investments who partnered to bring Elite into the JSE family.

Elite now takes the 35th space on the Junior Market, raising the number of securities to 39. Overall, the company is now 72nd on the list of companies on the entire exchange, bringing the total number of securities to 93.

To date capital raised by the 35 companies on the Junior Market accounts for $7.6 billion. Elite’s listing additionally raises the market capitalisation of the Junior Market to $121.4 billion, indicating the success of the JSE Junior Market which has grown from $503 million when the first company listed in 2009.

“With more persons having access to equity capital, it means that more investors are investing in the market and can grow their portfolio. It is a matter of wealth creation. When they invest in companies that do well, then they will benefit also and thus invest in other areas of the economy,” Street Forrest explained.

Warren Chung, CEO at Elite thanked his staff and financial advisors for a successful IPO and listing, stating simply, “Their advice was invaluable.”

NCBCM and Sagicor Investments worked for months along with the Elite team to bring the company to market.

“We are absolutely delighted to be co-brokers on this transaction,” said Herbert Hall, Assistant Vice President, Investment Banking, NCBCM. “This is one of the ways to demonstrate that we have the capacity to handle all sorts of transactions, whether they are extremely large or Junior Market type companies who want to list,” he added.

With the goal of raising more funds and expanding their locations and offerings, Elite says it is excited to be listed and looks forward to continued growth.

The IPO was also overseen by Patterson, Mair, Hamilton Attorneys-At-Law (PMH) for legal and Mair Russell Grant Thornton, for auditing.