Strong demand for Fontana stock on first trading day
Fontana Pharmacy listed on the Jamaica Stock Exchange Junior Market on Tuesday.
Fontana Pharmacy traded as high as $3.77 or double its listing price in its first day of trading on the Jamaica Stock Exchange (JSE) on Tuesday. However, the high-spike trades were canceled by the JSE due to the double-circuit breaker rule which allows for a maximum trade on a given day.
Despite being canceled on Tuesday, the bids at $3.77 will set the tone for trading Wednesday.
Fontana operates a number of pharmacies islandwide and raised $468 million in its listing on the JSE Junior Market. Fontana offered the general public 249,874,965 ordinary shares at a price of $1.88 per share. The funds raised will be used to capitalise on opportunities for improvement and expansion of the 50-year-old pharmacy.
Currently, Fontana has five pharmacies across the island and will open its largest store yet, a 35,000 square foot facility, at the intersection of West Kings House and Waterloo Roads in St Andrew next year.
The company also wants to expand into Portmore, St Catherine and Montego Bay.
Meanwhile, Ttech led gains Tuesday, up 35 per cent to $6.20.
The JSE Combined Index declined by 797.90 points ( 0.21 per cent) to close at 380,918.89. The JSE Index declined by 566.99 points ( 0.15 per cent) to close at 376,136.94.
The JSE All Jamaican Composite Index declined by 622.31 points ( 0.15 per cent) to close at 412,832.33. The JSE Select Index advanced by 1.61 points ( 0.02 per cent) to close at 9,733.97. The Junior Market Index declined by 25.14 points ( 0.77 per cent) to close at 3,221.64.
The JSE USD Equities Index closed at 162.46.
Overall Market activity resulted from trading in 48 stocks of which 18 advanced, 21 declined and nine traded firm.
Market volume amounted to 3,882,695 units valued at over $48,197,905.43. Stationery and Office Supplies was the volume leader with 1,813,896 units (46.72 per cent) followed by WISYNCO with 438,832 units (11.3 per cent) and Carreras with 319,764 units (8.24 per cent) .